4.3 However, further evaluation of the account revealed the following deficiencies,
which significantly affects its reliability and accuracy:
Non-maintenance of Work, Other Animals and Breeding Stocks Ledger Card
4.4 Section 114 of the NGAS Manual, Volume I requires the Chief Accountant to
maintain a Work, Other Animals and Breeding Stocks Ledger Card
(WOABSLC) for each type of livestock. This ledger card must include details
of the livestock account recorded in the inventory control account within the
general ledger.
4.5 The Provincial Accountant maintained the General Ledger (GL) and Subsidiary
Ledgers (SLs) through the FMIS. However, examination of the SLs revealed
that it did not provide detailed information about the livestock account. Rather,
the records were maintained according to the offices responsible for the
implementation of the specific projects or programs.
4.6 Furthermore, some entries in the SL only reflected payments for breeding stocks
or the recording of payable accounts for purchases, without capturing critical
details. Consequently, information such as the date of acquisition, property
number, description, quantity, value, births of offspring, and the disposition of
animals and offspring could not be determined.
4.7 Notably, based on the SL dating back to CY 2004, there were no recorded
biological transformations, such as growth, degeneration, production, or
procreation, which is inconsistent with the provisions of IPSAS 27.
4.8 Thus, the lack of detailed records undermines the completeness and reliability
of the livestock account. Further, monitoring acquisitions, births, or disposals
becomes impossible without proper documentation, which could lead to
unrecorded or mismanaged assets.
Dormant accounts exceeding ten years amounting to ₱6,717,359.87.
4.9 Pursuant to COA Circular No. 2016-004 dated September 30, 2016, local
accountants are required to review memoranda of agreement, contracts, and
similar documents of the LGU to identify the circumstances surrounding
transactions related to these agreements and to determine the appropriate
accounts to be used.
4.10 However, our examination of the SL revealed that accounts amounting to
₱6,717,359.87 have been dormant and have remained non-moving or with no
activity for over ten years since the last transaction recorded in the books, as
shown in the table below.
Ageing of Breeding Stocks Per Books
Description
Over 20 years 16 to 20 years 11 to 15 years Total
Carabaos ₱1,480,212.75 ₱1,480,212.75
Buck/Doe/Goat 613,795.00 32,000.00 645,795.00
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