Findings No.2 COA Annual Audit Report 2006

July 25, 2008

2. Despite advisory letter and verbal reminders, the Provincial Agriculture Office still failed to submit the Report of Supplies and Materials issued thus, the Agricultural Supplies worth P1,496,829.61 which were already issued has remained under Agricultural Supplies Inventory in the Trust Fund books thus, overstating the inventory account by P1,496,829.61.

As provided under Section 123 of the New Government Accounting System, “all issuances of supplies or property shall be properly receipted using the forms prescribed under applicable rules and regulations on supply and property management in the local government units.

Balance Sheet in the Trust Fund Account of the Province as of November 30, 2006 reported Agricultural Supplies Inventory in the amount of P1,496,829.61. Subsidiary record revealed the source of funds in the purchase of these inventories as follows:

DA Rehabilitation Program (2002)P961,109.55DA Livelihood Program (2002) 12,000.00Proceeds from DA Seedlings (2004) 13,780.00Camiguin Reforestation &

Mangrove Rehab. Project (2002) 509,940.06

Grand Total P1,496,829.61

Upon verbal follow up, the Provincial Agriculturist promised to submit the Report of Supplies and Materials issued to Accounting Office so that inventory account will be adjusted. But up to present, the said report was never submitted.

Per interview, it was determined that the Office did not practice the preparation of the Requisition and Issue Slip (RIS) for every issuance of agricultural supplies in the prior years. Although, they have a logbook, not all issuances are recorded in it. In addition, they alleged that their Office was not informed that they need to prepare Report of Supplies and Materials Issued because the supplies they have received were still recorded as inventories. At present, they did not know what items were still recorded as inventory in the books. So, they can’t just easily prepare the required report.

In view of the material amount involved, it is very necessary that the Provincial Agriculture Office should submit the Report of Supplies and Materials Issued duly signed by the person receiving the supplies.

Failure of the Provincial Agriculture Office to submit the required report has overstated the assets of the Province by P1,496,829.61.

During the exit conference, the Provincial Agriculturist promised to submit the report within the month of February, 2007.

RECOMMENDATION

Require the personnel in charge of the distribution of agricultural supplies to coordinate with the Accounting Office in retrieving the disbursement vouchers pertaining to the purchase to enable them to prepare the Report of Supplies and Materials Issued.

Furthermore, require the Provincial Agriculture Office to prepare the Requisition and Issue Slip for every issuance of agricultural supplies pursuant to the provision of Section 123 of the New Government Accounting System.

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Written by admin · Filed Under Camiguin, Commission on Audit