Findings No.4 COA Annual Audir Report 2005

July 26, 2008

4. The P12,628,728.31 expenses for gasoline, fuel and lubricants for CY 2005 included expenses for gasoline supplied to vehicles with private plate numbers and not owned by the Province of Misamis Oriental.

One of the objectives of the Manual of Audit for Fuel Consumption of Government Motor Vehicles is to ascertain that wasteful, excessive and unnecessary expenditures for fuel consumption are minimized, effectively controlled and properly accounted for.

Rule No. 7 of the same Manual also provides that no disbursement voucher for fuel consumption (gasoline and oil) of government vehicles shall be allowed in audit unless duly supported by properly accomplished and approved serially numbered driver’s trip tickets, and that the vehicles involved are properly marked with the required markings and bear government plates only with the exception of security vehicles exempt from using government plates. (underscoring provided)

Section 340 (e) of COA Circular No. 91-368 provides further that under no circumstances should fuel be issued for privately owned motor vehicles. No reimbursement for the cost of gasoline or diesel fuel and oil shall be drawn where a private vehicle is used.

Audit of transactions relative to the P12,628,728.31 disbursements of gasoline for Calendar Year 2005 showed that a number of privately owned vehicles, not included in the list of vehicles owned by the Province, were supplied with gasoline paid by the Province of Misamis Oriental. (Annex C).

Review further showed that the Requests for Fuel Issuance and the Driver’s Trip Tickets attached to the disbursement vouchers were properly approved by the Provincial Administrator but most of the time, places visited were not specific and purpose of the trips were not specified.

The lack of government owned vehicles for fast and effective services is not enough reason for the agency, the fact that they have more than forty (40) serviceable vehicles for its operation based upon the listing submitted by the General Services Office. (Annex D).

Such is a strong indication for the lack of an effective control on the part of the agency that may result to wastage and excessive consumption, since it cannot be avoided that vehicles with non-government plate might be used for trips other than official.

Recommendation:

Limit the issuance of gasoline to vehicles with government plate only and owned by the Province of Misamis Oriental. Not only can it reduce the expenses for gasoline but its savings can be used for other priority projects of the Province. However, if the use of a non-government plate vehicle cannot be avoided, a justification should be provided, indicating therein the authorized passenger/s, with a specific place to be visited and purpose specified to support claim.

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