Instead of recording purchased supplies and vaccines as inventory and then expensing them when used, the accounting office expensed them immediately, which is not the required method.

Why It Matters

Recommended Actions

• Require the MA to (a) submit on a monthly basis the report on the sources and utilization of LDRRMF based on the required format prescribed by COA Circular No. 2012-002 dated September 12, 2012
• (b) ensure that supporting documents are complete and in order before payment to contractors and suppliers is made
• And (c) recognize all types of inventories as asset upon purchase and recognize the used portion as expense upon submission of signed issuance documents to the MAO.

Original Audit Finding Excerpt

"Review of the Inventory accounting process disclosed that the MAO did not apply the PIM in the recognition of inventories upon purchase. Procurements of COVID-19 vaccines totaling ₱10,527,152.25 in CY 2021 were recorded as outright expenses under the account Medical and Dental Expenses (5-02-03-080)."

Source Document