3.10.2. The CGSO to rectify the erroneous RPCI form to include the
“BALANCE PER CARD” column which refers to the balances shown
in the supplies ledger cards maintained by the Accounting Office;
3.10.3. The CGSO to consolidate the weekly RIS for the supplies and materials
issued using the SSMI, assigning specific personnel for this purpose,
and submit the report to the City Accountant; and
3.10.4. The City Accountant to promptly prepare the journal entries to take
up the SSMI submitted by the CGSO for the dropping of the issued
inventories from the books.
3.11. The City Mayor had issued Office Order No. 2025-195-A dated February 26, 2025
directing the concerned personnel to comply with all the recommendations.
Overstated Due to National Government Agencies (NGAs) - ₱53,057,138.75
4. Fifty-seven projects totaling ₱53,057,138.75, financed through trust receipts from
NGAs, remained recorded as a liability under the Due to NGAs account despite their
completion and liquidation, deviating from COA Circular No. 2015-009 and the
International Public Sector Accounting Standards (IPSAS) 1 and 23, thus, overstating
the Due to NGAs account and understating the Government Equity account as of
December 31, 2024.
4.1. COA Circular No. 2015-009 dated December 01, 2025 prescribes the use of the
Revised Chart of Accounts for LGUs in recording and reporting of financial
transactions of LGUs. Annex C of the said Circular provides the following
description of the Due to NGAs account:
Account Title Account Code Description
Due to NGAs 2-02-01-050 This account is used to record the receipt of
funds for delivery of goods/services as
authorized by law, fund transfers from NGAs
for implementation of specific programs or
projects and other inter-agency transactions.
Debit this account for delivery of
goods/services, liquidation of funds
received and settlement of liabilities.
4.2. Further, Paragraph 9 of IPSAS 1 states that fair presentation of financial statements
requires the faithful representation of the effects of transactions, other events and
conditions in accordance with the definitions and recognition criteria for assets,
liabilities, revenue, and expenses set out in the IPSASs.
4.3. Moreover, Paragraph 96 of IPSAS 23 states provides that, “Goods in-kind are
recognized as assets when the goods are received, or there is a binding arrangement
42
