The inventory balance of about ₱4 million cannot be trusted because the municipality did not keep proper inventory records, did not use the required perpetual inventory method, and submitted physical count reports late. Some recommendations were done, but maintaining stock cards is still not done.

Why It Matters

Recommended Actions

• Require the MA to (i) strictly adhere to the PIM in the recording of inventories for fair presentation of Inventory accounts in the financial statements
• And (ii) maintain an updated SLCs in required format to account for all the receipts and issuances of inventories

Original Audit Finding Excerpt

"91 PART III - STATUS OF IMPLEMENTATION OF PRIOR YEAR’S AUDIT RECOMMENDATIONS There were 13 observations contained in the CY 20 22 Annual Audit Report for which 43 recommendations were offered. As of report date, 31 recommendations were implemented and 12 were not implemented as detailed below: Audit Observation/ Recommendation Ref. Management Action/s Status of Implementation/ Reasons for Non- Implementation 1. The Cash in Local Treasury (CLT) account reported balance of ₱ 17,262,316.40 was understated by ₱24,627.98 compared to the validated balance per cashbook of the MT, owing to non -recording in the books of returned cash advance by an accountable officer (AO) as at year-end. We recommended and the Local Chief Executive (LCE) agreed to require the MT and MA to (a) regularly reconcile their respective records for the early detection and correction of errors; and (b) based on the verified OR reflecting the corre ct amount of the refund,"

Source Document