ILOILO – The General Services Office (GSO) explained why it could not conduct a physical inventory of the properties of the provincial government last year.
The Commission on Audit (COA) flagged the province for its “incomplete physical count and non-reconciliation of the results of the physical count with the accounting records”.
“Nag-request kita for suspension sang physical count sang aton nga Property, Plant and Equipment (PPE),” said Aaron Raymundo, GSO head, citing the threat brought about by the coronavirus disease 2019.
He said it had Gov. Arthur Defensor Jr.’s approval.
“Magsiling physical count makadto ka sa mga opisina, sa mga hospitals… Ma-meet ‘kaw sang ila personnel,” Raymundo said.
As the pandemic drags on, “ma-expose ang mga tawo mo,” he said.
PPE were properties acquired or constructed in the previous years, amounting to P5.783 billion, as of Dec. 31, 2020.
According to COA, the province’s PPE accounts “were not adjusted for reconciling items.”
COA noted a P44.649-million variance between the accounting and property records.
Raymundo said, in lieu of the physical inventory-taking, the province required the supply officers or storekeepers designated in their respective offices/capitol-run hospitals to conduct the physical count and submit reports to the GSO in the required format of the Report on the Physical Count of Property, Plant and Equipment (RPCPPE).
The GSO then consolidated these reports and submitted to COA.
COA, however, said some offices had not submitted their report, or the report did not cover all PPE accounts.
Some properties included in the RPCPPE also had no unit value and total value for PPEs, thus were “understated” in the RPCPPE.
The inventory of markets, marine and fishery equipment, watercrafts, and books were also not included.
An inventory of properties would determine whether the properties under the provincial government still exist or not.
RECOMMENDATIONS
State auditors recommended that Defensor as local chief executive (LCE) ensure that both the officer-in-charge Provincial Accountant and the GSO to:
* coordinate with each other on reconciling the PPE and make the necessary adjustments;
* adjust the books accordingly for items that do not qualify under the capitalization threshold for PPE; and
* perform periodic reconciliation of their records to timely book reconciling items and minimize/eliminate the discrepancies.
COA also recommended that the LCE create and direct the Inventory Committee to:
* conduct a complete physical count of the PPE accounts for CY 2021 and prepare accurate report;
* complete the information in the RPCPPE especially on the unit value of the PPE so that correct balances are presented in the report; and
* reconcile the results of the count with the property and accounting records after the physical inventory-taking to clear discrepancies.
COA further recommended that management undertake one time cleansing of PPE account balances as provided in COA Circular No. 2020-006 “to establish PPE balances that are verifiable as to existence, condition and accountability”.
SUSPENSION
Meanwhile, Raymundo requested Defensor to suspend anew the conduct of physical inventory of properties in the 12 district hospitals and the Iloilo Provincial Hospital this year.
“Subong nga tiempo, ang mga hospitals 70 percent (bed capacity) gina-dedicate sa COVID-19 patients. Alang-alang pakadtuon mo sa COVID-19 area ang personnel,” Raymundo said.
As to the offices, Raymuno clarified they will conduct a physical count this year./PN
