Page 88 of 100

STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT
RECOMMENDATIONS

Of the 26 prior years’ recommendations, 15 were implemented and 11 were unimplemented as shown
in the results of validations presented below:


                                                                                Status of
                                                                             Implementation/
  Reference           Observations                 Recommendations
                                                                               Results of
                                                                               Validation

 2023 AAR,    The accuracy and existence Management to require:        Implemented
 AO No. 9,    of the inventory accounts
  page 41     totaling ₱141,769,329.85 as 1) The CGSO to conduct Physical count
              of December 31, 2023, were     semestral      physical was conducted
              unreliable due to (a) non-     count  of  supplies and on June 28, 2024
              conduct of physical count of   materials semestral and December
              inventories; (b) unrecorded    and to prepare the 30,2024.
              issuances of supplies and      corresponding RPCI;
              materials; and (c) inclusion
              of dormant accounts in the 2) The        CGSO       to   Implemented
              amount of ₱17,726,154.00;      consolidate         the
              contrary to the pertinent      issuances   of supplies The       CGSO
              sections in the Manual on      and materials thru submitted SSMI
              the     New     Government     SSMI and submit the together with the
              Accounting System (NGAS)       same together with corresponding
              for Local Government Units     the RIS to the CAO as JVs to the audit
              (LGUs), Volume I and II.       basis for recording the team.
                                             supplies and materials
                                             issued;                   Implemented

                                              3)   The CAO and CGSO Regular
                                                   to reconcile their reconciliations
                                                   records regularly; and are being done.

                                              4)   The CAO to make the
                                                   necessary                  Implemented
                                                   adjustments to reflect
                                                   the correct balance of    Journal entries
                                                   the           inventory   were made to
                                                   accounts       in   the   correct     the
                                                   financial statements.     balances of the
                                                                             inventory
                                                                             accounts in the
                                                                             financial
                                                                             statements.

                                                                                            71