Findings No.2 COA Annual Audit Report 2004

July 28, 2008

2. The Office of the General Services Officer (GSO) did not maintain Stock/Property Cards and the City Accountant did not maintain Supplies/Property and Equipment Ledger Cards, thus the validity and correctness of the balances of the PPE account in the amount of P37,482,067.74 is uncertain.

Sec. 119 of the NGAS Manual provides that “The General Services Officer or the Local Treasurer, as the case maybe, shall number each type of supplies and maintain Stock Cards per stock number. He shall likewise maintain Property Cards per category of property, plant and equipment.

Deliveries of supplies or property shall be immediately recorded in the property records on the basis of the Acceptance and Inspection Report (AIR) and other supporting documents. The AIR and other supporting documents shall be forwarded to the Chief Accountant for the preparation of the DV and recording of deliveries in the appropriate ledger cards.”

Sec. 120 of the NGAS Manual provides that “The Chief Accountant shall maintain Supplies Ledger Cards per stock number. Property, Plant and Equipment Ledger Cards for each category of assets; and Real Property Ledger Cards for land.

Upon receipt of the AIR and other supporting documents, the Chief Accountant shall record the deliveries in the appropriated ledger cards. Upon completion of the disbursement process pertaining thereto the Chief Accountant shall prepare the JEV taking up the equipment in the books the procurement made. Thereafter, the Chief Accountant shall reconcile the JEV with the appropriate ledger cards.”

It was disclosed that the Office of the General Services Officer did not have Stock/Property Cards and the Office of the City Accountant did not have Supplies/Property and Equipment Ledger Cards.

The amount reflected in the account Property, Plant and Equipment at year-end amounted to P37,482,067.74. Due to the failure to maintain the required records, the validity, correctness and existence of the items involved could not be ascertained.

The above-mentioned condition was violative to the provision of Sec. 120 of the NGAS Manual.

The management commented that such requirement is designed for computerization program, although they have not implemented the program but they have partially complied with the requirement, they have already made some postings in the cards but due to the voluminous transactions that they encountered daily in which only one personnel is assigned to record such transactions, thus they were unable to complete the requirement.

Recommendation:

Require the City General Services Officer and the City Accountant to maintain the required records.

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