Findings No.3 COA Annual Audit Report 2004

July 28, 2008

3. Failure to prepare Monthly Report of Supplies and Materials Issued had resulted in non-adjustment of P15,275,431.13 worth of consumed office supplies inventory, thus, overstating the account by same amount.

Section 158 of COA Circular 92-386 (d) provides guidelines for the issuance of expendable supplies from the General Services Officer to the requisitioning department or office by the use of Requisition and Issue Voucher (RIV), which shall be reported to the Accountant with the use of the Monthly Report of Supplies and Materials Issued (MRSMI). In Section 116 of the Manual on New Government Accounting System for Local Government Units the RIV is changed to Requisition and Issue Slip (RIS) and the (MRSMI) is also changed to Summary of Supplies and Materials Issued (SSMI).

As of December 31, 2004, the office supplies inventory had a balance of P15,275,431.13 in the subsidiary ledgers broken down as follows:

General FundSpecial Education TotalBeginning BalancesP16,518,174.21P 347,685.50P16,865,860.21Purchases511,748.30

-0-511,748.30

TotalP17,029,923.01P 347,685.50P17,377,608.51Issuances2,102,177.38-0-2,102,177.38

Ending BalancesP14,927,745.63P 347,685.50P15,275,431.13

Investigation showed that the total amount of P15,275,431.13 of supplies inventory is still carried in the books despite its consumption because the General Services Officer failed to submit to the Accounting Unit the Monthly Report of Supplies and Materials Issued (MRSMI) together with the original copies of Requisition and Issue Vouchers (RIV) of office supplies issued to offices in the prior years.

The practice had caused overstatement of assets and income accounts by P15,275431.13.

This is a reiteration of the previous year’s audit finding.

Management affirmed this finding and promised to correct the deficiency.

Recommendation

Require the General Services Officer to exert more effort to submit the required Monthly Report of Supplies and Materials Issued for office supplies. Provide additional personnel to assist her.

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Written by admin · Filed Under Commission on Audit, Tangub City