3.16 We recommended and the Provincial Accountant agreed to:
a) Maintain the Supplies Ledger Cards for each inventory item;
b) Investigate the non-moving inventory accounts and erroneous entries,
and record the necessary adjusting entries to reflect the correct
account balances;
c) Observe the prescribed guidelines and procedures for the proper
disposition of dormant inventory accounts, in accordance with Item 7
of COA Circular 2023-008; and
d) Prepare the monitoring and reporting requirements required under
Item 10 of the same COA Circular, and henceforth, ensure that current
transactions and those below ten years are properly documented and
appropriately acted upon immediately to avoid being dormant.
Unreliable breeding stocks amounting to ₱23,076,711.37
4. The reported balance of breeding stocks, valued at ₱23,076,711.37, could not be
relied upon due to (a) incomplete inventory count, (b) non-maintenance of the
Work, Other Animals and Breeding Stocks Ledger Card, (c) dormant accounts
exceeding ten years totaling ₱6,717,359.87, and (d) the non-recognition and
measurement of stocks in accordance with IPSAS 27, thereby causing
misstatements in the breeding stocks and related accounts for an undetermined
amount.
4.1 Paragraph 13 of IPSAS 27 provides that the entity shall recognize a biological
asset or agricultural produce when and only when the entity controls the asset
as a result of a past event, it is probable that future economic benefits or service
potential associated with the asset will flow to the entity and the fair value or
cost of the asset can be measured reliably.
4.2 An examination of the abstract of the subsidiary ledgers of the Provincial
Government of Negros Oriental at-year end showed the following balances
under the breeding stocks account:
SL Account Code Description Total
10801010-1011 Office of the Governor ₱7,034,608.00
10801010-300-1011 Office of the Governor – ENRD 88,700.00
10801010-1021 Office of the SP 1,302,175.00
10801010-8711 Department of Agriculture 3,382,537.37
10801010-8721 Provincial Veterinary Office 2,251,975.00
10801010-8911-01(17) Dispersal Program 194,950.00
10801010-8971-09(16)R Cattle Fattening Project 300,000.00
10801010-1999-077A (19) Livelihood Program – GAD 879,750.00
10801010-1999-085B (21) Livelihood Program-Livestock (GAD) 1,993,860.00
10801010-1999-055B (22) Livelihood Program-Livestock (GAD) 1,696,192.00
10801010-1999-104B (23) Livelihood Program-Livestock (GAD) 836,864.00
10801010-01(09) 3(A-D) T Carabao Dispersal Program 115,200.00
10801010-1999-97A(24) Livelihood Program- GAD 2,999,900.00
Total ₱23,076,711.37
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