2.5 Upon informing the City Accountant, he explained that inventories totaling
₱14,453,055.70 were duly supported with RIS, however, these were not attached
nor included in the supporting documents of the corresponding DVs. The City
Accountant also identified those which are still in inventory, which amounted to
₱12,673,425.06 and immediately effected correcting/adjusting entries. The
Accounting Office would continue making corrections/adjustments in 2025.
Details are shown as follows:
Immediately With RIS
Prior Year’s
Account Adjusted as (only not Unadjusted
Expenses
Inventories attached)
Other Supplies and ₱16,279,892.85 ₱4,556,709.35 ₱11,618,788.50 ₱104,395.00
Materials Expenses
Medical, Dental, and 3,396,125.71 3,120,035.71 0.00 276,090.00
Laboratory Supplies
Expenses
Office Supplies 2,513,894.50 2,315,001.00 105,493.50 93,400.00
Expenses
Agricultural and 2,249,399.00 1,871,949.00 132,000.00 245,450.00
Marine Supplies
Expenses
Food Supplies 1,752,071.00 0.00 1,752,071.00 0.00
Expenses
Animal/ Zoological 1,267,420.10 809,730.00 440,190.10 17,500.00
Supplies Expenses
Accountable Forms 297,900.00 0.00 297,900.00 0.00
Expenses
Drugs and Medicines 106,612.60 0.00 106,612.60 0.00
Expenses
Total ₱27,863,315.76 ₱12,673,425.06 ₱14,453,055.70 ₱736,835.00
2.6 Due to the foregoing, inventories totaling ₱736,835.00 were still recorded as
outright expenses. However, the City Accountant would effect entries in CY 2025
to correct the misstatement of the respective inventory and corresponding expense
accounts.
2.7 We recommended that Management install internal control mechanisms by
using the RIS to request for supplies and material from stock and to
consolidate the same in the SSMI, which shall be submitted to the City
Accountant for recording in the appropriate expense accounts for the supplies
consumed.
2.8 We also recommended that the City Accountant stop the practice of recording
purchases of supplies and materials directly to expense accounts and
henceforth, record purchases and utilization of supplies and materials in
accordance with Section 114 of the NGAS Manual for LGUs, Volume I and
Section IV of COA Circular No. 2014-002 dated April 15, 2014, to fairly
present the expense and inventory accounts in the financial statements.
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