4.7. Failing to follow the prescribed accounting treatment resulted in the
misclassification of expenses, which affected the reliability of financial reporting
and the accurate presentation of costs related to disaster response.
4.8. We recommended and the Municipal Accountant agreed to strictly adhere to
the illustrative accounting entries prescribed under COA Circular Nos. 2012-
002 and 2015-009 in recording the utilization of the unspent LDRRMF to
ensure proper accounting and accurate financial reporting of trust fund
transactions.
RIS and SSMI for Medical Supplies and Medicines
5. The Municipality’s recording of various medicines and medical supplies worth
₱2,235,426.25 used for GAD programs and projects, without the proper
documentation of actual issuance, specifically the Requisition and Issue Slip (RIS)
and Summary of Supplies and Materials Issued (SSMI), was not in accordance with
the NGAS Manual for LGUs, Volume I, thereby compromising the accuracy of
expense recognition and rendering the balances of the Drugs and Medicines
Inventory and Medical, Dental and Laboratory Supplies Inventory accounts
unreliable as of December 31, 2024.
5.1. The Manual on the New Government Accounting System (NGAS) for Local
Government Units (LGUs) was prescribed to ensure proper accounting of all
financial transactions of the LGUs. Section 116 thereof provides the requisition
procedures for supplies, while Section 121 provides the reporting on the issuance of
supplies/materials, viz:
“Sec. 116. Requisition Procedures. – (a) Requirement of Requisition
- Any order for supplies shall be filled by the provincial general services
officer, the city general services officer, or the municipal treasurer, as the
case maybe, for any office or department of the LGU concerned only upon
written requisition.
(b) Forms to be used - Requisitions shall be accomplished using the
following forms:
(1) Requisition Issue Slip (RIS) - for supplies carried in stock; and
(2) Purchase Request (PR) - for supplies not carried in stock.
(c) Preparation of Requisition - At the beginning of the year, the
Office of the General Services Officer (GSO) or the Municipal
Treasurer, as the case maybe, shall prepare a PR for supplies and
materials needed for the quarter based on the approved Annual
Procurement Program. Subsequent requisition from stock shall be
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