1.3 The audit of the CY 2024 accounts revealed, however, that management has yet
to fully address the aforecited deficiencies, thus, there is a need to reiterate the
same, as follows:
a) Failure to conduct a physical count of inventories at the end of each semester:
1.3.1. Section 124 of the Manual on the New Government Accounting System
(NGAS)1, provides that the local chief executive (LCE) shall require
periodic physical inventory of supplies or property. Physical count of
inventory items by type shall be conducted semestrally and reported in
the RPCI. This shall be submitted to the Auditor concerned not later than
July 31 and January 31 of each year for the first and second semesters,
respectively.
1.3.2. We followed up on the implementation of the audit recommendations in
CY 2020 and found out that a physical count of supplies and materials for
CY 2024 had not yet been conducted. Moreover, our records show that
the RPCI had not been submitted to the Office of the Auditor for the years
2021, 2022, 2023, and 2024. Concerned City General Services personnel
declared, however, that a physical inventory of supplies is scheduled to be
conducted in CY 2025.
b) Incomplete Supplies Ledger Cards (SLCs) and Stock Cards (SCs)
1.3.3. Additionally, Section 119 of the Manual on NGAS prescribes that the
General Services Officer shall number each type of supply and maintain
SCs per stock number.
1.3.4. During the interview with CGSO personnel, it was confirmed that they
only maintained property records for monitoring four (4) out of 10
inventory accounts. Accountable Forms, Plates and Stickers Inventory
was not directly monitored by CGSO as these items are under the custody
of the City Treasurer. Moreover, the Medical, Dental, and Laboratory
Supplies are held by the City Health Office.
1.3.5. It is important to note that the General Services Officer is responsible for
the custody and accountability of all properties, both real or personal,
owned by the City and those granted to it in the form of donation,
reparation, assistance, and counterpart of joint projects2.
1.3.6. While delegating the monitoring of certain inventories to the appropriate
offices may be efficient, CGSO should still maintain consolidated
property records for these inventory accounts. Such records would prove
invaluable during the mandatory conduct of the semi-annual inventory
process and facilitate the reconciliation of property and accounting
records.
1
Prescribed for use in all local government units under COA Circular No. 2002-003 dated June 20, 2002
2 Section 490, Article 20, Title 5 of Republic Act No. (RA) 7160, otherwise known as the Local Government Code
(LGC)
51
