Findings No.2 COA Annual Audit Report 2004

July 28, 2008

2. Inventory accounts with balances totalling P 11,341,813.23 some of which had already been consumed are still carried in the books due to the failure of the offices concerned to keep adequate records of its issuance in violation of Section 114, Vol. I of the New Government Accounting System Manual.

Verification of the accounting records showed that as of the end of the year, the following balances of inventory accounts which represent 90.19% of the total inventories appeared. (HYPERLINK “OroquietaCity04_Annexes.xls” \o “Annexes 1 – 4″Annex 2)

Office Supplies Inventory-P 1,017,981.68Drugs and Medicine Inventory-3,586,409.73Agricultural Supplies Inventory-2,833,394.43Spare Parts Inventory-3,904,027.39TotalP 11,341,813.23

Further verification showed that most of the items were already consumed long before. The supplies ledger cards for each type of supplies were not properly maintained by the General Services Office and the Accounting Office. Hence, the Summary of Supplies and Materials Issued supported by the Requisition and Issue Slips, could not be prepared weekly by the General Services Officer. These records/reports are the basis of the City Accountant’s Office in recording supplies and materials issued.

The General Services Officer commented that the Requisition Issue Slips pertaining to a certain transaction were attached to the Disbursement Voucher as one of the supporting documents which shall be the basis of the accounting department to make the necessary journal entries.

Although, a copy of Requisition Issue Slip was attached to the Disbursement Voucher, but the weekly Summary of Supplies and Materials Issued together with the original copy of the Requisition and Issue Slip shall be the basis of the Journal Entry Voucher.

Responsible officials and employees concerned admitted the shortcomings and provided assurance to improve the existing condition.

Recommendation

Require the General Services Officer to submit the Weekly Summary of Supplies and Materials together with the Requisition and Issue Slips as basis of the City Accountant to adjust the accounts accordingly. Thereafter, require semestral conduct of physical inventory of supplies as well as the keeping of updated stock cards and supplies ledger cards.

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Written by admin · Filed Under Commission on Audit, Oroquieta