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Status of
Ref Observation Recommendations Implementation/
Results of Validation
4) The CGSO and CAO maintain Unimplemented
stock cards and ledger cards, The CGSO and CAO
respectively, for each type of did not maintain
inventory to facilitate stock cards and
reconciliation with the actual ledger cards,
stocks on hand. respectively.
This is reiterated in
the audit of CY 2024
accounts as AO No.
3.
2023 The existence and accuracy of the 5) The CGSO fully account for the Unimplemented
AAR, Fuel, Oil, and Lubricants fuel purchases based on valid The CGSO has only
AO Inventory balance of supporting documents, made partial
No.3, ₱26,119,797.64 is not reliable due reconciling these with the actual implementation of
page to the lack of appropriate controls, balance of fuel in the storage this recommendation.
40 failure to maintain the proper tank, to pinpoint responsibility The balance of the
records, and to recognize the for those that cannot be Fuel, Oil, and
corresponding expense of the fuel accounted for, and to refrain from Lubricants Inventory
consumed, contrary to COA making additional purchases as of 12/31/2024
Circular No. 77-61. These until the balance is fully increased to
precluded the determination of the accounted for; ₱25,390,434.14.
reasonableness of the quantities Moreover, there was
purchased, which may be deemed no report submitted
excessive, contrary to COA on the physical count
Circular No. 2012-003, and conducted.
resulted in the understatement of
expenses and overstatement of the This is reiterated in
inventory balance presented in the the audit of CY 2024
financial statements. accounts as AO No.
6.
6) Management justify the necessity Unimplemented
and reasonableness of the No action taken by
quantities of fuel purchased, management.
including the seven fuel
procurements in December 2022, This is reiterated in
and why these should not be the audit of CY 2024
considered excessive, given the accounts as AO No.
huge balance of inventory 6.
existing at year-end;
7) The CGSO and CAO invariably Unimplemented
prepare and maintain the records No action taken by
required under COA Circular No. management.
77-61, and to comply with all the
requirements therein, including This is reiterated in
the regular submission of the the audit of CY 2024
consumption reports with accounts as AO No.
complete supporting documents 6.
8) The personnel in charge of Unimplemented
monitoring the gasoline storage
76