c) Use of RIS for the issuance of supplies and materials not executed
1.3.7. Section 116 of the Manual on NGAS states that requisitions for supplies
and materials shall be accomplished using the RIS for supplies carried in
stock and Purchase Request (PR) for supplies not carried in stock.
1.3.8. Likewise, Section 121 thereof further states that the General Services
Officer shall consolidate weekly the RIS using the Summary of Supplies
and Materials Issued (SSMI). The SSMI shall be submitted to the Chief
Accountant for proper recording of expenditures using appropriate
expenditure accounts.
1.3.9. Further validation of prior years’ audit recommendations revealed that
CGSO has not yet fully implemented the use of the RIS form, and there
has been no consolidation of all RIS in the SSMI. Evidently, SSMI was
not submitted to the City Accountant’s Office (CAO) for proper recording.
d) Inclusion of dormant items totaling ₱19,815,169.11
1.3.10. Further analysis of the subsidiary ledgers of the inventory accounts
showed dormant items amounting to ₱19,815,169.11, as detailed below:
Account Account No. Amount
Inventory Held for Distribution
Agricultural Produce for Distribution 1-04-02-060 ₱ 16,695.00
Property and Equipment for
Distribution 1-04-02-090 5,902,999.86
Other Supplies and Materials for
Distribution 1-04-02-990 596,688.00
Inventory Held for Consumption
Office Supplies Inventory 1-04-04-010 11,107,811.33
Accountable Forms Inventory 1-04-04-020 32,596.58
Food Supplies Inventory 1-04-04-050 499,500.00
Medical, Dental and Laboratory
Supplies Inventory 1-04-04-070 15,645.22
Construction Materials Inventory 1-04-04-130 305,471.60
Other Materials and Supplies Inventory 1-04-04-990 1,337,761.52
Total ₱ 19,815,169.11
1.3.11. As a rule, it is very unlikely that inventory accounts have dormant
balances since such items are supposed to be fast-moving, usually
perishable, and consumed within a short period.
1.3.12. Under existing regulations, purchases of supplies and materials should be
good only for a three-month requirement. However, the aforementioned
inventories have been in the books for three (3) to five (5) years.
1.4 In view of the foregoing, the asset and equity accounts were overstated as of
December 31, 2024, rendering the existence and accuracy of the inventory
account balance unreliable, ultimately affecting the fair presentation of the
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