City Hall’s purchase of P22M medical, dental supplies ‘inappropriate’

By: Gerome Dalipe

THE purchase of medical and dental supplies by the Iloilo City Government amounting to P22-million in 2018 violated the provisions of the New Government Accounting System.

The City Government declared the procurement of medicines, chemicals and medical, dental and other laboratory supplies as mere “outright expenses,” the Commission on Audit (COA) said.

Such irregular practice by the City Government resulted in the overstatement and understatement of the expense and inventory accounts respectively and possible inventory misuse or loss.

In their 2018 audit report, the state auditors urged the city accountant to place purchases of supplies as inventories under the appropriate account.

The City Accounting Office should also maintain supplies ledger cards and reconcile the journal entry voucher with the appropriate ledger cards.

Likewise, the General Services Office is also tasked to maintain, update, and reconcile stock cards with the ledger cards of the accounting unit.

The auditors reminded the city accountant and all the department heads to adhere to the rules and procedures in accounting for supplies under the New Government Accounting System.

Apart from the erroneous purchase of medical and dental supplies, the City Government also failed to submit on time the report on the physical count of property, plant, and equipment.

This runs contrast to the New Government Accounting System for the local government unit.

The City’s failure to submit the editorial report cast doubt on the accuracy and completeness of the property, plant, and equipment amounting to P3.539 billion.

In the report, the auditors directed the City General Services Office to determine the causal of the delay in the preparation or submission of the report.

Apart from delayed submission of the report, the City’s property, plant and equipment balances amounting to P798.711 million were not supported with schedules or details.

This could doubt its reliability of the account balances in the financial statements.

Likewise, the state auditors directed the city accountant to review the entries in the subsidiary ledgers of the property, plant, and equipment.

The auditors also advised the city accountant to make necessary adjustments to correct the balances of affected accounts and to continuously coordinate with the General Services Office in the reconciliation of properties.