5.14. We recommended and the City Mayor agreed to require the following offices to
undertake the necessary steps to ensure that only valid payables are recorded in
the books:
5.14.1. The CBO only accept obligation requests which are duly supported with
supplier bills/invoices and duly accomplished AIR that represent valid
obligations of the City;
5.14.2. The City Accountant and the City Treasurer prioritize the review of the
recorded payables outstanding for more than two years to ascertain if
these still represent valid claims, otherwise seek authority from the SP to
revert these to the Unappropriated Surplus in the GF so that these may
be made available for funding valuable development programs and other
priority activities of the City;
5.14.3. The City Accountant prepare a JEV to reverse the estimated obligations
totaling ₱798,241.42, debiting Accounts Payable and crediting Prior
Period Adjustment;
5.14.4. The City Accountant revise the Accounts Payable aging schedule to
reflect the correct dates for accurate reporting, in keeping with Sections
110 and 111 of P.D. No. 1445.
Overstated Fuel, Oil, and Lubricants Inventory - ₱25,390,434.14
6. The Fuel, Oil, and Lubricants Inventory balance of ₱25,390,434.14 was overstated
while the related expense account was understated because the utilization thereof was
not appropriately recognized in the books, contrary to Section 121 of the NGAS
Manual for LGUs, Volume I, thereby affecting the fair presentation of the account in
the financial statements.
6.1. Section 121 of the NGAS Manual for LGUs, Volume I, requires the CGSO to prepare
the SSMI weekly and submit this to the CAO as basis for the JEV to recognize the
corresponding expense.
6.2. Item Nos. 3 and 4 of COA Circular No. 77-61 dated September 26, 1977 provide the
following:
3. Fuel consumption of government motor transportation shall be properly
controlled and accounted for through approved Requisition and Issue
Voucher or equivalent (Appendix B of the Circular).
4. Monthly Report of Fuel Consumption of government motor
transportation (Appendix G of the Circular) shall be submitted to the
Auditor for verification purposes to determine the reasonableness of fuel
consumed during the period.
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