Frequently Asked Questions
FAQ: Basey Water District Biennial Audit Report
Answers to common questions about the Commission on Audit (COA) Biennial Audit Report of the Basey Water District (BWD) covering CY 2023 and CY 2024. The guide contains 38 questions across its sections below.
Institutional Profile, Mandate & Governance
The Basey Water District was originally established in 1977 under the management of the local government. On October 31, 1977, the Sangguniang Bayan of Basey approved Resolution No. 97, officially creating the Basey Water District (BWD) pursuant to Presidential Decree (P.D.) No. 198 (the Provincial Water Utilities Act of 1973). Operations and management were formally transferred to the autonomous Water District in 1982. On September 6, 1982, the Local Water Utilities Administration (LWUA) awarded Conditional Certificate of Conformance (CCC) No. 215 to the District. Furthermore, on March 12, 1992, the Supreme Court declared with finality that all local water districts formed under P.D. No. 198 are Government-Owned or Controlled Corporations (GOCCs).
Source and verification reference: Executive Summary, Section A (The Agency), p. 4; Part I - Notes to Financial Statements, Note 1 (Agency Background), p. 26.
Audit Scope & Independent Auditor’s Opinion
The COA rendered a Qualified Opinion on the combined financial statements of the Basey Water District for the calendar years ended December 31, 2024, and December 31, 2023. This opinion signifies that, except for the effects of material misstatements, unadjusted reconciling entries, and unverified balances described in the Bases for Qualified Opinion section, the financial statements present fairly, in all material respects, the financial position, financial performance, cash flows, and changes in equity of the District in accordance with PFRS.
Source and verification reference: Transmittal Letters, pp. 2-3; Part I - Independent Auditor’s Report, pp. 10, 13.
Financial Condition & Balance Sheet Highlights (CY 2023 vs. CY 2024)
The financial position of the District is summarized below:
| Financial Position Element | CY 2024 (₱) | CY 2023 (₱) | CY 2022 (₱) |
|---|---|---|---|
| Current Assets | 16,276,335.39 | 15,272,859.35 | 14,104,516.10 |
| Non-Current Assets (PPE/CIP) | 10,046,496.09 | 10,423,860.99 | 10,289,327.39 |
| TOTAL ASSETS | 26,322,831.48 | 25,696,720.34 | 24,393,843.49 |
| Current Liabilities | 1,637,394.41 | 2,826,418.48 | (395,299.05) |
| Non-Current Liabilities | 1,146,391.81 | 1,380,116.81 | 1,590,206.30 |
| TOTAL LIABILITIES | 2,783,786.22 | 4,206,535.29 | 1,194,907.25 |
| TOTAL EQUITY (Retained Earnings) | 23,539,045.26 | 21,490,185.05 | 23,198,936.24 |
| TOTAL LIABILITIES & EQUITY | 26,322,831.48 | 25,696,720.34 | 24,393,843.49 |
Note: In Table 2 of the Executive Summary, Liabilities and Equity for CY 2024 were listed as ₱2,892,360.26 and ₱23,430,471.22 respectively; however, the Audited Condensed Statement of Financial Position confirms Total Liabilities of ₱2,783,786.22 and Equity of ₱23,539,045.26.
Source and verification reference: Executive Summary, Table 2, p. 5; Part I - Audited Condensed Statement of Financial Position, pp. 20-21.
Operating Results & Comprehensive Income
Total revenue was ₱8,494,764.13 in CY 2024, reflecting a decrease of 6.74% from ₱9,109,176.73 in CY 2023. Revenue streams comprise:
| Revenue / Income Category | CY 2024 (₱) | CY 2023 (₱) | CY 2022 (₱) |
|---|---|---|---|
| Inspection Fees | 8,360.00 | 0.00 | 10,400.00 |
| Other Service Income | 755.00 | 780.00 | 0.00 |
| Metered Water Sales (Gross) | 7,907,481.00 | 8,524,957.31 | 8,808,873.10 |
| Less: Sales Discounts | (28,020.72) | (24,654.34) | (25,727.73) |
| Net Metered Water Sales | 7,879,460.28 | 8,500,302.97 | 8,783,145.37 |
| Waterworks System Fees | 88,013.00 | 82,588.50 | 32,052.00 |
| Fines and Penalties - Business Income | 422,661.95 | 499,757.31 | 487,664.63 |
| Sale of Unserviceable Property | 1,050.00 | 150.00 | 800.00 |
| Other Business Income / Gains | 94,463.90 | 25,597.95 | 194,589.99 |
| Donations in Kind | 0.00 | 0.00 | 19,800.00 |
| TOTAL REVENUE | 8,494,764.13 | 9,109,176.73 | 9,528,451.99 |
Source and verification reference: Part I - Audited Condensed Statement of Comprehensive Income, p. 22; Notes to Financial Statements, Notes 14-15, pp. 38-39; Appendix B.1, p. 166.
Corporate Operating Budget (COB) vs. Actual Expenditures
In CY 2024, BWD operated with an approved Corporate Operating Budget of ₱20,016,808.02, but incurred actual expenditures of only ₱8,210,696.62, generating an overall favorable variance of ₱11,806,111.40 (budget execution rate of 41.02%):
| Budget Category | Approved Budget (₱) | Actual Expenditures (₱) | Favorable Variance (₱) | Execution Rate (%) |
|---|---|---|---|---|
| Personal Services (PS) | 6,944,952.30 | 4,235,509.00 | 2,709,443.30 | 60.99% |
| MOOE | 5,649,714.72 | 3,078,688.93 | 2,571,025.79 | 54.49% |
| Capital Outlay (CO) | 7,422,141.00 | 896,498.69 | 6,525,642.31 | 12.08% |
| TOTALS | 20,016,808.02 | 8,210,696.62 | 11,806,111.40 | 41.02% |
Source and verification reference: Executive Summary, Section B, Table 3, p. 5.
Technical Operations & Non-Revenue Water (NRW)
Based on BWD’s Monthly Data Sheets (MDS):
- CY 2024: Total water production was 736,180 cubic meters, while total billed/accounted water consumption was 343,564 cubic meters, leaving 392,616 cubic meters in unbilled water losses.
- CY 2023: Total water production was 811,288 cubic meters, while total billed/accounted water consumption was 368,195 cubic meters, leaving 443,093 cubic meters in unbilled water losses.
Source and verification reference: Part II - Audit Observation No. 10, Table 21, p. 86.
Detailed Audit Observations & Accounting Deficiencies
Audit verification of Cash in Bank - LCCA (₱13,178,704.36) and LCSA (₱14,493.44) revealed four major deficiencies:
- Unadjusted Reconciling Items Overstating LCCA: ₱86,944.15
- Unsubstantiated BRS Adjustments: ₱228.58 net
- Omission of Bank Reconciliation Statements (BRS) for two accounts (LBP Special Project Fund CA (masked — see official COA report): ₱10,000.00; LBP/LWUA Joint Savings Account (masked): ₱11,000.00)
- Dormant Deposit in Liquidated Bank: Rural Bank of Basey, Inc. (Closed under PDIC Liquidation): ₱14,493.44
Source and verification reference: Part II - Audit Observation No. 1 (5), pp. 46-51; Annexes A, B, and C, pp. 110-113.
Statutory Compliance (Insurance, GAD, DRRM & Mandatory Deductions)
No. Under Republic Act (RA) No. 656 (Property Insurance Law), all government entities are mandated to insure their insurable assets with the GSIS. Out of BWD’s total insurable PPE of ₱17,918,626.08, only ₱3,517,795.16 (19.63%) was covered by GSIS insurance:
- Fire Policy No. FI-GIG-GSISTAC-0001599: Sum insured of ₱2,993,119.16 (Leased office contents ₱883,089.16; Filtration house contents ₱1.79M; Chlorination house contents ₱103k; Filtration building ₱151,910.00; Chlorination building ₱65,120.00; Premium paid: ₱26,011.05).
- Floater Policy No. FL-SPF-GSISTAC-0000881: Sum insured of ₱524,676.00 (Office equipment ₱276,866.00; Seko chemical metering pump ₱247,810.00; Premium paid: ₱21,554.66).
- Uninsured Exposure: Over ₱14.40 million (80.37%) in district assets (including transmission mains, reservoir tanks, vehicles, generators, and IT infrastructure) remained completely uninsured against fire, earthquake, storm, or catastrophic loss.
Source and verification reference: Part II - Audit Observation No. 11, Table 23, pp. 88-89; Annexes M-1 & M-2, pp. 134-135.
Audit Suspensions, Disallowances, Charges & Prior Recommendations
As reflected in the Statement of Audit Suspensions, Disallowances and Charges (SASDC), total unsettled audit issuances stood at ₱1,404,739.91:
| Category | Adjusted Beg. Balance (Jan. 1, 2023) (₱) | Issuances (2023-2024) (₱) | Settlements / NSSDC (2023-2024) (₱) | Ending Balance (Dec. 31, 2024) (₱) |
|---|---|---|---|---|
| Notice of Suspension (NS) | 2,000,538.35 | 94,560.00 | 1,327,828.70 | 767,269.65 |
| Notice of Disallowance (ND) | 622,482.06 | 18,252.20 | 3,264.00 | 637,470.26 |
| Notice of Charge (NC) | 0.00 | 0.00 | 0.00 | 0.00 |
| TOTALS | 2,623,020.41 | 112,812.20 | 1,331,092.70 | 1,404,739.91 |
Note: Beginning balance was adjusted from actual disbursement vouchers to correct NS No. 2023-012 from ₱6,304.00 to ₱3,500.00. No part of the unsettled NS and ND balances pertained to the current administration. ₱7,500.00 of the unsettled NS and ₱2,000.00 of the unsettled ND lacked supporting documents due to absent historical turnover reports.
Source and verification reference: Executive Summary, Section E, Table 5, pp. 5, 8; Part III - Status of Audit Suspensions, Disallowances and Charges, p. 106.