2.9 The City Accountant explained that this has been the practice of the City
Government. He confirmed that some inventories were expensed immediately,
especially those recorded in the Other Supplies and Materials expenses as these
were immediately issued to end-users, particularly meals and snacks. He assured
that appropriate RIS would be issued for these inventories to recognize them as
expenses.
Misclassification of accounts –₱15,807,069.14
3. Expenditures incurred for travel and gatherings such as consultative meetings
totaling ₱15,751,263.14 and cash advances relating to travel and intelligence
purposes amounting to ₱55,806.00, were misclassified to other expense and
receivable accounts, respectively, that do not reflect the true nature of their
purpose, inconsistent with COA Circular No. 2015-009, dated December 1, 2015,
thereby affecting the usefulness of financial information available for users of
financial statements, especially in the budgeting and decision-making process of
Management.
3.1 Paragraph 15 of the International Public Sector Accounting Standards (IPSAS) 1
clarifies that the objectives of a general-purpose financial statements are to provide
information about the financial position, financial performance, and cash flows of
an entity that is useful to users in making and evaluating decisions about the
allocation of resources. In the public sector, more specifically, the purpose of
financial reporting is to mainly provide information useful in decision making, and
to demonstrate accountability of the government agency.
3.2 Relative thereto, the Commission on Audit issued COA Circular No. 2015-009
dated December 1, 2015, to prescribe a uniform chart of accounts for LGUs. Annex
A of the said Circular defines the following accounts:
Account Account No. Description
Expenses
Traveling Expenses – 5-02-01-010 Used to record the costs incurred in
Local the movement/transport of
government officers and employees
within the country. This includes
transportation, travel per diems,
ferriage, and all other related
expenses.
Training Expenses 5-02-02-010 Used to record the costs incurred for
the participation/attendance in and
conduct of trainings, conventions and
seminars/workshops. It includes
training fees, honoraria of lecturers,
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