1.13.3. Temporarily relieve the members of the Inventory Committee of all their
regular duties so they can fully devote their time to conducting the
physical inventory until its completion;
1.13.4. Request for a COA representative to witness the inventory-taking; and
1.13.5. Direct the Inventory Committee to strictly follow the general and
procedural guidelines outlined in COA Circular No. 2020-006 dated
January 31, 2020 in the conduct of the physical count of PPE and the one-
time cleansing of PPE account balances.
1.14. During the exit conference, the Municipal Mayor stated that he intends to have a
meeting regarding this and they will endeavor to complete the one-time cleansing of
PPEs at the soonest possible time.
1.15. The Municipal Treasurer also inquired if they are allowed to gradually dispose of
unserviceable properties. The Audit Team affirmed that disposal may be done as long
as every movement is reflected in the books.
Accountable Forms, Plates and Stickers Inventory
2. The accuracy of the Accountable Forms, Plates and Stickers inventory account in the
total amount of ₱1,074,559.30 is unreliable because the Municipal Treasurer did not
conduct a physical count of inventory items every semester and did not prepare the
Summary of Supplies and Materials Issued (SSMI), which is the basis for recording
the utilization of inventory items, contrary to Sections 121 and 124, Chapter 7 of the
New Government Accounting System (NGAS) Manual for Local Government Units
(LGUs), thereby overstating the Inventory account by ₱889,767.22 and understating
the Expense account of the same amount, affecting the fair presentation of the
accounts in the financial statements.
2.1. Sections 121, Chapter 7 of the NGAS Manual for LGUs, set forth the procedures for
accounting for supplies or property, as follows:
“Section 121. Reporting on Issuance of Supplies/materials – The General
Services Officer or the Local Treasurer, as the case may be, shall
consolidate weekly the RIS for which supplies and materials were issued
using the Summary of Supplies and Materials Issued (SSMI). The SSMI
together with the original copy of the RIS shall be submitted to the Chief
Accountant, who shall compute the cost of supplies and ending inventory
using the moving average method. Based on the SSMI, a JEV shall
be prepared to record the expenditures using appropriate expenditure
accounts.
Xxx.
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