COMMISSION ON AUDIT MEMORANDUM NO. 85-390-A May 27, 1985
TO
: The Managers, Administrative Office, Manpower Development Office, Planning,
Financial & Management Office, Technical Service Office; COA Regional
Directors; Chief Accountant and Auditor, COA Central Office; Accountants and
Auditors, COA Regional Offices; and all others concerned.
SUBJECT : Conduct of the Inventory of Supplies and Materials and Reporting of Variance.
In order to strengthen internal control over the handling of supplies and materials in the
custody of various supply units in the Commission on Audit, a system for the inventory-taking of
such items to be conducted once a year is hereby adopted:
1.
Inventory teams shall be formed every year-end to conduct simultaneous
physical count of supplies and materials in Central Office's different supply units,
namely, the Training and Development Division (TDD), Manpower Development
Office (MDO); the Property and General Services Division (PGSD), Building and
Maintenance Group (BMG) and the Medical and Dental Unit (MDU),
Administrative Office (AO); and the Price Monitoring Division (PMD), Technical
Service Office (TSO); and the COA Regional Offices. For the Central Office, two
inventory teams shall be constituted, the first team will cover supplies in the
custody of the PGSD, BMG and MDU while the second team will cover those in
the custody of the MDO and the PMD.
2.
Each inventory team shall be composed of the Supply Officer/Custodian of the
supply unit concerned, one representative from Accounting Division/Section and
another one from the Office of the Auditor of the Central Office or Regional
Offices, as the case may be.
3.
The Supply Officers/Custodian of each supply unit shall prepare the list of items
in their custody on or before the fifth working day of January each year. With this
list, the inventory teams shall simultaneously conduct the physical count of
supplies and materials. At the end of the inventory, the teams shall prepare for
each unit, a Property Inventory Report (PIR) [General Form No. 41 (A), see
Exhibit No. 1] to be submitted to the Accounting Division/Section of the COA
Central Office or COA Regional Offices, as the case may be, on or before the
15th working day of January. (See Flowchart No. 1)
4.
Upon receipt of the PIRs from the inventory teams, the Accounting
Division/Section concerned shall compare their balances against those
appearing in the books. Based on this, it shall prepare within ten working days a
Supplies and Materials Reconciliation Report (SMRR) (see Exhibit 2), to be
distributed as follows:
Copy 1 - Chairman's Office
2 - Auditor's Office
3 - Manager, AO (for BMG, MDU or PGSD's report)
or Manager, MDO (for TDD's report), Manager,
TSO (for PMD's report) or COA Regional Director
concerned (for the Regional Office's report)
4 - Manager, PFMO
5 - TDD, PMD, MDU, BMG, PGSD, Supply Officers in the COA
Regional Offices
6 - File
To facilitate reconciliation between the records of the supply units (per stock cards) and
the Accounting Division/Section (per books), a Quarterly Statement of Supplies and Materials
(see Exhibit No. 3) shall be submitted by the former to the latter before the fifth working day of
the succeeding quarter.
5.
The accounting for supplies and materials shall be in accordance with the
procedures prescribed in Attachment No. 1. However, all records of the supply
units and the Accounting Division/Section should have been reconciled as of July
31, 1985, to clearly identify and resolve problem areas that may occur prior to the
implementation of this Memorandum. The latest Inventory Report shall be the
base figures. In case of disagreement between the balances appearing in the
Accounting Division/ Section and the supply units' records, a new physical
inventory may be conducted as determined by the Auditor concerned.
6.
The instructions herein provided on physical inventory- taking and reconciliation
shall likewise be made whenever there is a change of Supply Officer/Custodian.
This Memorandum shall supplement COA Memorandum No. 84-390, dated April 4,
1984, and shall take effect on July 31, 1985.
The Managers, Administrative Office, Planning, Financial and Management Office,
Technical Service Office and the Manpower Development Office; and the COA Regional
Directors shall supervise the proper implementation of this Memorandum. The Management
Support Group (MSG), through the Internal Audit Section, shall monitor its implementation.
(SGD.) FRANCISCO S. TANTUICO, JR., Chairman
Attachment No. 1
ACCOUNTING FOR SUPPLIES AND MATERIALS
BASIC FEATURES
1.
A central receiving point shall be established for each of the following supply units in the
Central Office: the TDD, the PGSD, the BMG, the MDU, and the PMD. All Regional
Offices shall also have their own central receiving point. All receipts of the supply unit
must clear through this central receiving point. The Supply Officer/Custodian shall in all
cases be furnished with a copy of the approved Purchase Order (PO) which shall be the
basis of authority to accept deliveries of supplies and materials. Before acceptance,
however, he shall check whether or not they conform to specifications. For control
purposes, all supply units shall see to it that the Receiving Report (RR) (See Exhibit 4)
evidencing their receipt and inspection of supplies and materials and the invoice/delivery
receipt, especially the RR intended for Subsidiary Ledger Clerk, are properly stamped
with "POSTED TO STOCK CARDS". This procedure will likewise effectively monitor
other consumable items directly purchased and received by the end-user.
2.
Issuances of supplies and materials shall be properly controlled by both the issuing units
and the Accounting Division/Section. The issuing units or supply units, namely, the
TDD, the PGSD, the BMG, the MDU, the PMD and that of the Regional Offices shall
maintain corresponding subsidiary ledger cards to facilitate reconciliation.
3.
All purchases of supplies and materials shall be charged against the following control
accounts:
8-72-700
-
Inventories - Supplies & Materials
Charged to Appropriations.
Included here are all expendable items
such as office supplies, janitorial supplies,
medicines, construction materials, general
forms and COA Uniforms.
8-72-600
-
Inventories - Semi-Expendable Supplies,
Containers and Property.
Included here are semi-expendable
supplies, containers, furnitures, fixtures,
equipment and books with value of not
more than P500 each and/or with a life
expectancy of more than one year,
charged to appropriations. (See COA
Circular No. 84-200(A), dated August
1, 1984)
Upon payment, a corollary entry for these accounts shall be taken up in the
Disbursement Voucher, then to the appropriate report/journal where the payment shall
be recorded.
4.
The supply units shall, in all cases, make the necessary postings in the stock cards for
all supplies and materials received and issued. Special Disbursing Officers with petty
cash/cash advance shall at all times see to it that supplies and materials they purchased
are reported to the Stock Clerk concerned through copies 2 and 3 of the Requisition
and Issue Voucher (RIV). RIVs must reflect the correct quantity and unit price of the items
purchased. In the case of semi-expendable items, their issuance shall always be covered
by Memorandum Receipts (General Form No. 32-A) and shall also be subjected to
inventory every year-end.
At the end of each month, designated Supply Officers in different supply units shall
submit to the Accounting Division/Section the total issuance of supplies and materials
by means of the Supplies Adjustment Sheet (SAS), commonly known as the
Consumption Report (See Exhibits 5, 6, and 7) from which a Journal Voucher shall be
drawn to credit the inventory account.
5.
In the Accounting Division/Section, deliveries of supplies and materials shall be posted in
the appropriate Subsidiary Ledger on the bases of evidence of their receipt submitted by
the supply units. Issuances, on the other hand, shall likewise be posted based on the
SAS received from different supply units. Data appearing in the SAS shall be crosschecked with those in the supporting RIVs/Requisition and Issue Slips. Since Subsidiary
Ledger Card per item for accounts 8-72-700 is difficult for the Accounting Division/Section
to maintain, the following sub-accounts classification shall also be used to facilitate
reconciliation:
For Expendable Items:
8-72-701
8-72-702
703
704
705
706
707
708
8-72-700
- Office Supplies (Commonly Used/
Miscellaneous)
- Janitorial Supplies
- Medicines
- Painting
- Carpentry
- Plumbing
- Electrical Supplies
- COA Uniforms
Female Uniform
708 A - Multi-colored blouse
B - Flesh-colored blouse
C - Blue-striped materials
D - White uniform with red and
yellow logo
E - Blue-gray skirt
Male Uniform
708 Y - White materials with COA logo
709
710
6.
- General Forms
- Others
For sample purchases of supplies and materials made/to be made by the PMD, recording,
inventory-taking and reporting thereof shall likewise be done by following the procedures
herein cited. However, for semi-expendable items, corresponding Memorandum Receipts
shall be issued in the name of a responsible official in the Division. The Original Copy
of these receipts shall in all cases be maintained and periodically updated by the PGSD.