Master Company to upgrade the unit capability up to 360 tests so that it can perform SIS examination or replace the machine, otherwise, the machine delivered should be rejected/returned and the whole amount paid to the supplier should be refunded to the Hospital. We also recommended that the Property and Inspection Officer, before issuing the ratification on the conformance of items delivered with the required specifications in the POs, ensure that all the requirements stated in the contract are complied with instead of focusing only on the quantity.
In case of any deficiencies noted, the deliveries be rejected and require replacement thereof. 6. Lack of procurement plan, policies and guidelines on the repairs and maintenance of hospital facilities resulted in overstocking of inventories for supplies and materials which is not in accordance with Section 23 of RA No. 9770, the General Appropriations Act for Fiscal Year 2010 which limit the stocks to be procured to only aroma three-month requirements (Para’s. 9-16).
We recommended that the Head of Plumbing, Electrical and Carpentry Division: Conduct inspection of the Hospital facilities to determine those that needed repair so that the excess stocks can be immediately issued and used; Formulate policies and guidelines on the preventive maintenance and repair of Hospital buildings and facilities; Identify the facilities which needed repair, prepare work programs and bills of materials to determine the quantity and the cost of materials to be procured and when the materials are needed.
On the basis thereof, prepare a procurement plan which will be the basis of the lists of materials to be included in the APP; and Ensure that the stocks on hand are not in excess of the normal three-month requirements. 7. The Section Heads of the Maintenance Division who are responsible for the receipt, storekeepers and issuance of supplies and materials are the ones recording the movement of stocks in the Supplies Ledger Cards (Sells) instead of the Accounting Section which is not in accordance with Section 12 of the Manual on the NAGS, Volume II and sound internal control.
Further, the Accountant uses the CLC to record issuance of materials instead of the Report of Supplies and Materials Issued (RSI) to be submitted by the Property Officer which is not in conformity with Section 62 of the Manual on the NAGS, Volume II (Para’s. 47-53). We recommended that management require: The Section Heads of the Maintenance Division to discontinue with the recording of the receipts and issuance of stocks in the CLC which should be maintained by the Accounting Section.
Property Section to: (I) maintain the Stock Cards to record movements of stocks; (it) repaper the RIMS to report the issuance of supplies; and (iii) copy furnish the Accountant with the RIMS as basis of the preparation of JIVE. The Accountant to: (I) maintain the CLC to record the receipts and issuance of supplies; (it) use the RIMS to be furnished by the Property Section in the preparation schedule/list of materials issued. 8. The costs of supplies for the fabrications of office tables, examining tables, shelves, and cabinets and materials and labor for the renovation of Delivery Room amounting to IPPP,969.
O and IPPP,231. 80, respectively, were recorded under account Other Supplies Expenses instead of accounts Hospitals and Health Centers and Furniture and Fixtures which is not in accordance with Sections 86 and 118 of the Manual on the NAGS, Volume Ill. These overstated account Other Supplies Expenses by IPPP,200. 80 and understated account Hospitals and Health Centers by IPPP,231. 80 and account Furniture and Fixture by IPPP,969. O for/as of ICY 2010 (Para’s. 54-61).
The Property Officer to prepare the necessary Property Cards for the fabricated items as prescribed under Section 42 of the same Manual, assign property number and an ARE for the issued items. The Maintenance Division to: (I) prepare an inventory list of the finished products with their corresponding costs to be submitted to the Property Section; and (ii) henceforth, in future similar cases, prepare an inventory list of the finished products with the corresponding costs and turn-over the same to the Property Section.
The Accountant to draw a JIVE to reclassify the costs of the renovation and fabrication from Other Supplies Expenses account to accounts Hospitals and Health Centers and Furniture and Fixtures, respectively. 9. The practice of the Hospital of not recognizing in the books of accounts the callowness which are final and executors as prescribed by COCA Circular Nose. 2009-006 and 2004-008 resulted in the understatement of Receivable and Government Equity accounts both by representing the balance of unreturned disallowed, as of year-end of ICY 2010 (Para’s. 2-67). We recommended that the Accountant draw a Journal Entry Voucher FOE) to record the remaining disallowed of under Receivables – Dissonances/Charges. Henceforth, any dissonances which are final and executors be recorded on time to the proper account/s. 2005 and April 2008, the periods of which were within the five-year interval of the election year of the Hospital, were paid in ICY 2010 anniversary bonus of UP,OHO. O each which was contrary to the provision of Item No. 1. 2 of Administrative Order (AY) NO. 263 dated March 28, 1996 (Para’s. 68-74).
We recommended that the Administrative Officer of ADJOURN require the concerned employees to refund the unauthorized receipt of anniversary bonus of UP,OHO. O. Henceforth, the Administrative Officer ensure that only employees who are entitled to receive personnel benefits are paid. The deficiencies observed in the course of the audit were earlier communicated wrought Audit Observation Memorandum (MOM) and discussed in the exit conference conducted on March 15, 2011 with concerned officials and employees. Their comments were incorporated in this report, where appropriate.
We are pleased to note their positive responses to the observations and their commitments to immediately implement the audit recommendations. Implementation of Prior Years’ Audit Recommendations The status of implementation of prior years’ audit recommendations embodied in previous years Management Letters is shown below: Status of Implementation Fully Implemented Partially Implemented Not Implemented Total No. Of Recommendations 14 2 3 19 Percentage 74 11 15 partially implemented or not implemented as of year-end, biz: A.
