2.11. The Management stated that the CEO and the City Planning and Development Office
(CPDO) had already started with the physical count of all its road networks; however,
it will take time to fully comply with the inventory count considering the amount of
work needed to conduct an ocular inspection on all the roads built by the City. The
said officers will submit a partial report on their compliance to show their progress.
Unreliable Inventory accounts - ₱151,601,129.37
3. Various inventory accounts totaling ₱151,601,129.37 were still recorded in the books
despite their non-existence because the Summary of Supplies and Materials Issued
(SSMI) was not completely prepared or recorded in the books, contrary to Section
121 of the New Government Accounting System (NGAS) Manual for LGUs, Volume
I, thereby affecting the fair presentation of the inventory accounts in the financial
statements.
3.1. Sections 119 to 121 of the Manual on the NGAS for LGUs, Volume I, provide the
following regulations regarding the recording of properties and supplies, viz.:
Sec. 119. Property Records to be Maintained. The General Services Officer
shall number each type of supplies and maintain Stock Cards per stock
number.
Deliveries of supplies or property shall be immediately recorded in the
property records on the basis of the Acceptance and Inspection Report (AIR)
and other supporting documents. The AIR and other supporting documents
shall be forwarded to the Chief Accountant for the preparation of the
Disbursement Voucher (DV) and recording of deliveries in the appropriate
ledger cards.
Sec. 120. Recording of Deliveries of Supplies or Property in the Books of
Accounts. The Chief Accountant shall maintain Supplies Ledger Cards per
stock number;
Upon receipt of the AIR and other supporting documents, the Chief
Accountant shall record the deliveries in the appropriate ledger cards.
Sec. 121. Reporting on Issuance of Supplies/materials. The General
Services Officer or the Local Treasurer, as the case maybe, shall consolidate
weekly the Requisition and Issue Slips (RIS) for which supplies and materials
were issued using the SSMI. The SSMI together with the original copy of
the RIS shall be submitted to the Chief Accountant, who shall compute cost
of supplies issued and ending inventory using the moving average method.
Based on the SSMI, a Journal Entry Voucher (JEV) shall be prepared to
record the expenditures using appropriate expenditure accounts.
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