Account Account Description
No.
such as: meetings and conferences,
public relations, educational,
cultural and athletic activities,
membership fees in government
organizations, etc. This account
shall be closed to the Revenue and
Expense Summary account.
6.3 Our examination of the Other Maintenance and Operating Expenses (5-02-99-990)
account revealed that these included expenses for meals and snacks served during
training sessions and/or gatherings, amounting to about ₱594,689.00. These
expenses involve public hearings, capability building, the celebration of women’s
month, nutrition and tourism month, minus-one and dance competitions during the
tourism road show, and blood donation activities, among others. These expenses
could have been recorded in the Extraordinary and Miscellaneous Expenses (5-02-
10-030) or Training Expenses (5-02-02-010) accounts. For example, the meals and
snacks served during the following activities should have been classified as
Training Expenses and Extraordinary and Miscellaneous Expenses, respectively:
Training Expenses
Capability Building for Daycare Workers and Child Development Workers ₱ 32,760.00
Leadership Skills Training for Senior Citizens 73,790.00
Sub-total ₱106,550.00
Extraordinary and Miscellaneous Expenses
Meals and snacks served during public hearing, women’s month, nutrition and ₱488,139.00
tourism month, and blood donation activities, among others
Grand Total ₱594,689.00
6.4 Apart from the Chart of Accounts recommended by the Commission, Section 51
of the General Provisions, General Appropriations Act (GAA) of CY 2024
provides that Extraordinary and Miscellaneous Expenses encompass costs incurred
for meetings, seminars and conferences, official entertainment, public relations,
educational, athletic and cultural activities, contributions to civic or charitable
institutions, membership in government associations, membership in national
professional organizations accredited by the Professional Regulation Commission,
membership in the Integrated Bar or the Philippines, subscription to professional
technical journals and informative magazines, library books and materials, office
equipment and supplies, and other similar expenses not supported by the regular
budge allocation.
6.5 In light of the above, expenditures totaling ₱594,689.00 have been recorded or
classified under Other Maintenance and Operating Expenses, which do not
accurately reflect the nature of the incurrence. It is important to note that proper
recording of these expenses is crucial in management's decision-making process,
especially during budgeting and appropriation of expenditures. This would enable
Management to promote accountability among its officials and employees and
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