6.7.1. There was no Gasoline/Fuel Card (Appendix E of COA Circular No. 77-61)
maintained where the quantity of gasoline purchased should have been shown
for record and control purposes.
6.7.2. The RIS used for withdrawals of fuel from the storage tank did not bear any
signature even from the requisitioning official, nor did it bear the approval of
the Supply Officer and the City Mayor. The fuel issued was likewise not
acknowledged by the Driver of the motor vehicle.
6.7.3. The Daily Gas Issue Record (Appendix C of the above-mentioned Circular)
was not maintained where all the RIS are supposed to be chronologically
entered, and where the daily opening and closing meter reading is indicated.
Nor were these summarized daily and posted monthly in the Gasoline/Fuel
Card, with the balance indicated. The lack thereof made it impossible to
compare the balance of unissued fuel per storage tank.
6.7.4. There was no Monthly Report of Fuel Consumption submitted that would
have shown, among others, the different motor vehicles used and the
corresponding fuel consumed.
6.8. The absence of necessary records and supporting documentation for fuel
consumption precluded the auditor and other authorities from verifying whether the
correct quantity of fuel was received as ordered, whether fuel was issued exclusively
to government vehicles, whether vehicles were used solely for official purposes, and
whether fuel consumption was reasonable. As a result, there is increased exposure to
risks such as:
▪ losing fuel without clear accountability;
▪ improper accounting of unutilized or unconsumed fuel
▪ discrepancies between recorded data and actual inventory.
6.9. The CGSO acknowledged that controls over the issuance of FOL from previous
purchases stored in the storage tank were weak, particularly when high-ranking
officials requested fuel from the personnel in charge without the necessary approval
through a duly-accomplished RIS. This limitation was a significant factor in the
City’s decision to discontinue maintaining its own fuel depot. However, the
remaining balance of the FOL inventory is still recorded in the books and requires
proper accounting.
6.10. As a result, the balance of the Fuel, Oil and Lubricants inventory account was not
fairly presented in the financial statements because its issuance was not properly
recognized in the books, thus, understating the expense account and overstating the
inventory account.
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