COA flags Nat’l Museum for 'inadequate' accounting of collection, uninsured properties

The National Museum of the Philippines was flagged by the Commission on Audit (COA) for its "inadequate" and "improper" handling of various works of art and archaeological specimens entrusted to its care.

In its 2018 audit report, the COA called the National Museum's attention on certain "unaccounted" and "undocumented" borrowed items, as well as "unsubstantiated" report on museum collections loaned to government agencies and private institutions.

Auditors also took note of the "improper" transfer of certain collections to various National Museum branches or satellite offices, as well as the loaning of collections to other agencies or institutions that were not included in the museum's inventory report.

According to the COA, these are contrary to Section 7.3 of Republic Act No. 8492 or the “National Museum Act of 1998."

In the recommendations, the National Museum was asked to ensure that "received artworks and specimens, whether purchased or donated, shall be initially accounted by the property custodian."

According the COA, the custodian shall primarily register the borrowed items in a separate book before issuing the same to the respective accountable officer.

The National Museum was also asked to furnish auditors copies of unsubmitted MOAs on borrowed items, as well as loan agreements on the collections loaned to other government agencies and private institutions.

Concerned officers in each division National Museum head office and branches, on the other hand, were directed to coordinate with the property custodian before borrowing or lending specimens within the agency.

The National Museum was also told to ensure that the property custodian and the other concerned divisions who were issued the specimen are informed of the collections loaned to other government agency and private institutions by providing them a copy of the loan agreements.

The COA said this would enable them to update their record and to monitor the status of loaned specimens.

Finally, the COA directed the Property Custodian to conduct an annual and complete inventory of the National Museum's collections.

Insurance

In the audit report, COA said the National Museum "substantially" complied with RA 656, otherwise known as the Property Insurance Law.

The audit showed that P2,143,791,869.80 out of P2,295,762,739.44 reported insurable properties was insured with the General Insurance Fund (GIF) of the Government Service Insurance System (GSIS).

Meanwhile, properties amounting to P337,676,790.26 were not covered with property insurance.

"Thus, government properties are not amply protected from the risk of non-indemnification in case subject assets will suffer any damage or loss due to fire, earthquake, storm or other fortuitous events," COA said.

COA recommended the National Museum management to secure from GSIS GIF an insurance of all the insurable properties of the government.

The management was also told to direct the accountant and property officer to reconcile their records to be able to reflect a proper valuation in the inventory of insurable assets for submission to GSIS. — MDM, GMA News