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Findings No.2 COA Annual Audit Report 2006

July 26, 2008

2. Transfers of properties to other government agencies summing P4,462,508.00 were not supported with the required documents as prescribed under Section 123 of COA Circular No. 2002-003 and Section 186 of COA Circular 92-386 and were not properly communicated to the agency head concerned thus, proper accounting of these government’s assets could not be undertaken, eventually exposing government properties to possible loss or misuse.


Section 123 of COA Circular No. 2002-003 states among others:

“All issuances of supplies and property shall be properly receipted using the forms prescribed under applicable rules and regulations on supply and property management in local government units.”

Whereas, Section 158 (a) of COA Circular 92-386 provides that:

“Transfer of non-expendable supplies or property from one supply officer to another supply officer shall be covered by Invoice Receipt (General Form 30-A, as amended)” .

Section 186 of COA Circular 92-386 also provides that:

Transfer without cost of supplies or property from local government unit to any other government agency shall be approved as follows:

transfer between local government – the sanggunian representing the transferor and the local chief executive representing the transferee shall approve the transfer; and

transfer between local government and national government - the sanggunian shall approve for the local government and the head of the department or office of the national government shall approve for the department or office of the national government concerned.

Further, a Journal Entry Voucher (JEV) shall be drawn to drop the property transferred from the books of accounts. Copy of the JEV and Invoice Receipt shall be transmitted to the head of the recipient agency as basis of taking up the subject property transferred in the books of accounts.

However, JEV taking up the transfer of property was not drawn. Except from the own-designed/modified pro-forma of Invoice Receipt for Property prepared by the General Services Office (GSO) where it lacks the necessary signatories, no other documents were made to attest the transfer of property from the provincial government to other Local Government Units (LGUs) and National Government Agencies (NGAs) summing P4,462,508.00 . (Annex 2 )

No office took concern as to whether the property transferred could be accounted/recorded in the books of the recipient agency.

Since there was no JEV drawn taking up in the books as asset accounts on the properties procured intended for transfer, as discussed previously in Finding No. 1, it could then be unnecessary to draw JEV dropping the property from the asset accounts upon actual transfer of property.


The GSO is claiming that the issuance of its own-designed/modified pro-forma of Invoice Receipt for Property executed during the procurement process of properties intended for transfer terminated the ownership of the provincial government over the subject property especially so that most of the properties are directly delivered to the concerned recipient.

There being no document/s which will serve as basis for booking up the property transferred from the provincial government to other government agencies, there is a high risk/possibility that the subject property may not be booked up by the recipient agency concerned. Such condition would not only understate the government’s assets and corresponding expense but would also expose the government properties to possible loss or misuse.

The management concurred with our observations and promised to implement our recommendations in the ensuing year’s operations.

Recommendation:

Require the approval of the Sangguniang Panlalawigan and the heads of the LGUs and NGAs as recipients of the transferred property from the province per Section 186 of COA Circular 92-386.

Require the GSO to prepare/accomplish the prescribed form on the Invoice Receipt for Property (IRP) upon the transfer of property from the provincial government to other government agencies.

Also, require the recipient agency to draw a JEV taking up the property received in its book as asset account and to provide the provincial government a copy of the said JEV as basis of the Provincial Accountant to draw a JEV dropping the property transferred to other government agency from its books of accounts.

Written by admin · Filed Under Commission on Audit, Misamis Occidental 

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