6.3. Further, Section 111 of P.D. No. 1445 requires that the accounts be kept in such detail
to meet the needs of the agency and to furnish the information needed by fiscal or
control agencies of the government.
6.4. As of December 31, 2024, the financial statements reported a significant balance of
₱25,390,434.14 in its Fuel, Oil and Lubricants (FOL) Inventory account (1-04-04-
080). Verification of the Fuel Consumption Monitoring Report for CY 2024,
prepared by the CAO, showed that two separate records were maintained to
distinguish the FOL purchases made by the present administration from those of the
previous administration (starting in 2019), along with the corresponding liquidations.
Details are as follows:
Present Previous
Date Particulars Balance
Administration Administration
01/01/24 Beginning Balance ₱13,918,643.20 ₱12,201,154.44 ₱26,119,797.64
FOLE 100-24-07-001P -
07/12/24 DFDWSC dated 11/16-30/20
(50,863.52)
FOLE 100-24-07-002P -
07/19/24 DFDWSC dated 12/01-08/20
(246,750.11)
FOLE 100-24-08-003P -
08/20/24 (134,585.84)
FDWSC dated 12/09-15/20
FOLE-NA100-24-09-001 -
09/30/24 (125,716.86)
DFWSC dated 08/12-25/22
FOLE 100-24-10-004P -
10/20/24 (90,092.76)
DFDWSC dated 12/12-22/20
FOLE 100-24-11-005P -
11/18/24 (81,354.41)
DFDWSC dated 12/23-31/20
TOTAL LIQUIDATION (125,716.86) (603,646.64) (729,363.50)
Balance, 12/31/24 ₱13,792,926.34 ₱ 11,597,507.80 ₱ 25,390,434.14
% of Liquidation 0.91% 5.20% 2.87%
6.5. Moreover, in CY 2024, total FOL purchases that were directly recorded as expenses
amounted to ₱15,507,515.16.
6.6. Records showed that the City previously maintained a fuel storage depot and made
massive procurements from 2019-2022 with very minimal liquidation through the
Fuel, Oil and Lubricants Expense reports submitted by the CGSO to CAO to take up
the issuances of fuel from its storage tank. The rate of liquidation has been rapidly
dwindling through the years, starting as high as 80 per cent in CY 2020, which
drastically dropped to 16 per cent in CY 2021 and then a much lower rate in CY 2024
of 2.87 per cent. In CY 2024, only one liquidation was made for purchases dating
back to CY 2022, while the rest were for purchases made even earlier, in CY 2020.
This explains the balance in the fuel account by the end of the year.
6.7. Representative of the audit team conducted an ocular inspection on February 21, 2025
of the aforementioned storage tank and confirmed that there was no more fuel stored
therein. In our previous inquiries with the CGSO, we found that:
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