The Municipality recorded the purchase of textbooks under the wrong expense account, which misrepresents the nature of the spending in its financial statements.

Why It Matters

Recommended Actions

• Require (a) the BAC to require from the prospective bidders the submission of updated eligibility documents, statement of all its ongoing government and private contracts, including contracts awarded but not yet started, latest financial statements stamped received by the BIR, SLCC and NFCC
• (b) LSB to support the payment of (i) self-learning modules with DepEd guidelines or memorandum that the same was not funded by the DepEd
• And (ii) textbooks and supplementary materials/workbooks with written report submitted to the OSEC and BLR before the start of procurement justifying the necessity to procure the textbooks
• And (c) the MA to (i) submit the complete DVs and SDs to support claims against the SEF budget including the distribution lists for the procured textbooks and supplementary materials/workbooks aggregating to ₱17,482,596.80 and school supplies amounting to ₱2,975,425.40
• And (ii) recognize the acquisition of textbooks and similar materials in accordance with the prescribed Chart of Accounts under COA Circular No. 2015-009 dated December 1, 2015.

Original Audit Finding Excerpt

"Apart from these, the transaction was recognized in the accounting books under the account Research, Exploration and Development Expenses instead of Textbooks and Instructional Materials for Distribution account. This is contrary to COA Circular No. 2015-009 dated December 1, 2015 which prescribes the use of the revised Charts of Accounts for LGUs."

Source Document