Status of
Ref. Audit Observation Audit Recommendation Management Comment/Action
Implementation
2013 could not be established due to the the handling of supplies by requiring the
weak internal control system in the Municipal Treasurer/Supply Officer to:
management thereof, including the
recording of purchases as outright 49. maintain the necessary stock and property Management still had not taken Not
expenses, non-maintenance of supply cards to monitor the purchases, issuances any action. Implemented
records, and non-conduct of semi- and distributions of supplies and
annual physical count, contrary to materials;
existing regulations provided in 50. conduct the regular physical count of Management still had not Not
Chapter 7 of the Manual on the New these items, prepare the required report of conducted a physical count of its Implemented
Government Accounting System for physical count and submit the same to the inventories.
LGUs Volume 1 (MNGAS), hence, office of the auditor; and
overstating expenses and understating 51. provide ample storage and physical Management still had no Not
assets and government equity by an safeguards for supplies in stock against warehouse that could store the Implemented
undetermined amount at year end. damage and risk of loss. supplies.
Reiterated in Part II of this AAR. 52. directing the Accounting Unit to follow Management still had to Not
the perpetual inventory method in the implement the Perpetual Inventory Implemented
purchase of supplies and materials, Method.
including the maintenance of supply and
property ledger cards in compliance with
Chapter 7, Sections 114 and 121 of the
MNGAS, and to make the necessary
adjusting entries to properly recognize the
appropriate inventory accounts upon
purchase instead of expenses.
AAR Municipal government-owned 53. We recommended that Management Management still had not taken Not
2021 vehicles were not marked with the require the concurrent supply officer to any action. Implemented
words “For Official Use Only” and had have all the vehicles of the Municipality
no written name of the Municipality, marked “For Official Use Only,”
nor did they bear the government plate including the name and the logo of the
as required under the existing COA local government unit, in compliance with
Circular No. 75-06 dated November 7,
75
