10 years to 20 More than 20
Account Name Total
years years
Drugs and Medicines Inventory 2,902,361.45 - 2,902,361.45
Medical, Dental and Laboratory Supplies 7,182,720.45 5,594,445.11 12,777,165.56
Fuel, Oil and Lubricants Inventory 4,389,997.16 388,541.05 4,778,538.21
Agricultural and Marine Supplies Inventory - - -
Construction Materials Inventory 560,965.37 - 560,965.37
Other Supplies and Materials Inventory 49,683.00 265,245.00 314,928.00
Total ₱15,398,322.09 ₱6,802,352.99 ₱22,200,675.08
3.10 Inventories are expected to be consumed within one year or within the normal
operating cycle of the agency. Considering that these items were acquired
decades ago, it is presumed that the dormant inventory accounts pertain to items
that have already been distributed, issued, consumed, expired, or rendered
unusable. Thus, appropriate adjusting entries should be made to reflect the
accurate inventory balances.
3.11 In the absence of supporting records and documents, and the insufficient
knowledge among the current accounting personnel, the agency could have
availed of the one-time cleansing of all dormant accounts as provided under the
referenced COA Circular. Management is reminded, however, that this option
should not be used to further derecognized subsequent dormant accounts.
Negative balance amounting to ₱623,726.29.
3.12 Further, the following negative balances totaling ₱623,726.29 were identified
in the inventory account during the reconciliation of transactions in the SLs:
Account Name Account No. Amount
Medical, Dental and Lab. Supplies Inventory 10404070 ₱ (266,144.45)
Fuel, Oil and Lubricants Inventory 10404080 (357,581.84)
Total ₱ (623,726.29)
3.13 This balance pertains to negative amounts caused by any of the following:
negative beginning balances, credit entries without corresponding debit
balances, and erroneous postings such as double recording of issuances or
misposting to the wrong account.
3.14 An abnormal general ledger account balance is an accounting irregularity
caused by the incorrect posting of transactions or non-compliance with the
normal debit or credit balance established in the general ledger chart of
accounts.
3.15 The identified deficiencies, including the non-maintenance of Supplies Ledger
Cards, the existence of dormant inventory account balances amounting to
₱22,200,675.08, and the negative balance of ₱623,726.29, which resulted from
a lack of proper documentation and control over inventory transactions, impair
the accuracy and reliability of the inventory balances.
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