COA to Sibonga: Form inventory committee

 CEBU, Philippines - More than P100 million of Sibonga’s equipment and other properties in 2011 could not be established due to absence of property records and non-submission of inventory reports.

In a latest Commission on Audit (COA) report, it was noted that the physical inventory of the municipality’s fixed assets under property, plant and equipment (PPE) amounting to P102, 020,535.18 had not been conducted as of December 31, 2011. 

Also, the audit agency said the accounting and the GSO failed to maintain appropriate ledger and property cards which is in violation of Section 114 of the New Government Accounting System Manual. 

“The required reconciliation between the count, the property cards and accounting PPE ledger cards could not be made,” the report read. 

The audit agency recommended to Sibonga Mayor Lionel Bacaltos to organize an inventory committee which shall prepare a complete and accurate physical inventory report.

“As in the preceding, verification revealed that due to the failure of the municipal government to create an inventory committee, no physical inventory taking was conducted of their property, plant and equipment costing P102,020,535.18,” the audit report read. 

Likewise, it also directed the GSO to strictly observe the pertinent rules and regulations on the proper management and control of properties to include the proper procedures to be followed for accurate inventory reports.

COA also required the Accountant to maintain property cards and for the GSO and Accountant’s Office to reconcile their property records.

“Time constraints and the inadequacy of the accounting records did not permit the auditor to apply alternative audit procedures to validate the existence, validity and accuracy of PPE,” the report read. 

If any discrepancies exist, COA said that “it should be immediately verified and adjusted to ensure fairness of account presentation in the financial statements.”  (FREEMAN)