Professional Documents
Culture Documents
Specific Purpose/Activity
Travel
BFAR-CO
Reg. IV
Reg. V
RFTC, Reg. V
Reg. VI
Reg. XI
Reg. XIII
Reg. IX
Reg. X
Reg. XII
P 4,181,552.69
327,234.19
1,979,240.00
211,424.00
344,792.47
2,334,501.41
519,050.00
2,218,106.59
1,921,854.02
P 3,264,888.76
1,855,856.96
1,841,937.32
471,533.00
175,295.80
1,440,109.65
206,727.00
2,135,576.49
_____________
Total
P14,037,755.37
P 11,391,924.98
17
P18,194,175.25
3,368,787.20
8,027,716.08
245,922.61
3,519,866.22
Total
P33,356,467.36
Gas, Oil and Lubricants issued are still recorded in the books, thus,
overstating the account by P359,421.50 and understating the related
expense account in Region VI, while the gas and oil purchases in Region
18
Amount
I
RFTC-V
V
IV
P14,095,352.86
4,160,341.00
38,391,529.50
19,105,383.67
Total
P75,752,607.03
19
b.
Per Books
Per Inventory
Discrepancy
BFAR-C. O
III
XI
RFTC-VIII
Region X
P1,293,140,651.85 P940,780,259.33
16,974,982.40
18,000,010.77
22,831,652.75
22,106,782.18
3,220,452.89
1,880,849.11
12,994,113.05
2,079,207.83
P352,360,392.52
( 1,025,028.37)
724,870.57
1,339,603.78
10,914,905.22
Total
P1,349,161,852.94
P364,314,743.72
P984,847,108.22
20
In Region II, Furniture and Fixtures with a unit cost of P8,160.00 was
directly charged to expense, thus, understating the asset account.
21
d.
No depreciation expense during the year was provided for depreciable assets
totaling P321,849,510.85 of the following regions, resulting in overstatement
of both the Property, Plant and Equipment and Government Equity accounts.
PPE Balances W/o Allowance
for Accumulated Depreciation
Region/Office
BFAR-C.O.
CAR
II
IV
V
VI
VIII
RFTC-IX
XI
Total
P211,013,076.46
11,171,445.15
20,054,476.99
19,105,383.67
38,391,529.50
10,716,134.61
7,242,571.12
2,980,919.56
1,173,973.79
P321,849,510.85
The total assets of Region IV which was not depreciated was disclosed in
the Notes to Financial Statements.
Management alleged that the failure to provide for depreciation on some
assets was due to reclassification of some Property, Plant and Equipment
accounts in the implementation of the New Government Accounting System.
Accounts Payable Balance Not Certain - P 1.331 Billion
4. The accuracy of the Accounts Payable totaling P1,331,333,691.74 is doubtful due
to the following:
a. The schedules of the Account Payable submitted do not tally with the
figures as presented in the financial statements and show a difference of
P48,653,448.31.
b. The account includes the amount of P5,476,769,30 representing
obligations incurred by CAR. However, records show that the items
procured were not yet delivered and accepted nor the services rendered or
bills been received from the contractors/suppliers.
c. There are no adequate supporting documents/schedules to prove validity
of accounts payables of Regions VIII, XI and XII in the amounts of
P5,592,349.85, P2,406,750.00 and P9,298,658.29, respectively.
The Accounting Unit should prepare the necessary adjusting entries to reflect
the correct amount of Accounts Payable in the books of accounts.
22
23
The adjusting entry made to correct the entry for the disallowance of
P1,000.00 that was deducted from the salary of the employee concerned
was credited to the Salaries Regular Pay account instead of to the
Receivables Disallowances/Charges account.
B. In RFTC-VII, Electric, Water and Cellphone bills of prior years in the total
amount of P16,748.00 were charged to Current Years Operation instead of to
the Prior Years Adjustment. Other Inventory account amounting to
P285,922.20 was classified to the account Office Supplies Inventory.
C. Likewise, in RFTC-VII, Government Equity was erroneously debited for
recording the issuance of supplies totaling P223,824.45 and for correcting
entry of Prior Years Expenses in the amount of P37,248.00, instead of the
account Prior Years Adjustments. In addition, there was erroneous dropping
from the books of the Semi-Expendable Supplies and Materials and
Equipment in the total amount of P562,073.39.
The Accountant should effect the necessary adjusting/correcting entry/ies
as recommended by the regional auditor to reflect the correct balance of the
affected accounts.
24
Amount Paid
Region V
RFTC V
Region VI
Region VII
RFTC-VII
P 1,751,870.76
666,000.00
3,416,275.00
739,000.00
2,938,331.99
Total
P 9,511,477.75
25