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Tandag City 2008 COA Audit 14

July 2, 2010

14. Purchase and issuance of cellcards to officials or employees, was not properly regulated as there is no clear-cut guidelines that defines the limitation and availment of the same.
Our review on the accounts and operations of the City government noted  total purchases of cellcards in the amount of P183,925.38 (Annex H). It was further noted that:
1. Purchases of cell cards in bulk procurement process were not supported by list of recipient duly acknowledged by the end user;
2. There is no well define guidelines on the issuances and utilization of the same;
3. Charges to appropriation is either other maintenance and operating expenses or supplies and  not telephone expense-mobile;
4. Accounting entries were directly charge to expense account.
The use of cell cards cannot be easily identified whether personal or official in nature. In the Sangguniang Resolution No. 140 series of 2005, the SB  considered “a request for appropriation on telephone expense – mobile of the auditor’s office to be unnecessary and extravagant expense and that it could be easily abused.”  However, it was concurred by this commission to be allowable in audit, provided that the declared policy of the state that all resources must be managed, expended or utilized in accordance with law and regulation, and safeguarded against loss or wastage through illegal or improper disposition must be faithfully adhered to.
Hence, to properly regulate the use of the same, a well defined authority must be issued to avoid wastage of public funds.  Likewise, the necessity and reasonableness of the amount must be taken into consideration.  Charges of the same must be limited to telephone expense – mobile account.
RECOMMENDATION FOR TANDAG CITY GOVERNMENT:
Advise the Sangguniang Panlungsod to prepare a well-defined guidelines in the availment and limitation of cellcards taking into consideration the nature of their work assignment for the approval of the Local Chief Executive. Advise the City Budget Officer & City Accountant to limit charges for the purchase of cell-cards to telephone expense mobile account appropriation only.

14. Purchase and issuance of cellcards to officials or employees, was not properly regulated as there is no clear-cut guidelines that defines the limitation and availment of the same.    Our review on the accounts and operations of the City government noted  total purchases of cellcards in the amount of P183,925.38 (Annex H). It was further noted that:1. Purchases of cell cards in bulk procurement process were not supported by list of recipient duly acknowledged by the end user;2. There is no well define guidelines on the issuances and utilization of the same;3. Charges to appropriation is either other maintenance and operating expenses or supplies and  not telephone expense-mobile;4. Accounting entries were directly charge to expense account.    The use of cell cards cannot be easily identified whether personal or official in nature. In the Sangguniang Resolution No. 140 series of 2005, the SB  considered “a request for appropriation on telephone expense – mobile of the auditor’s office to be unnecessary and extravagant expense and that it could be easily abused.”  However, it was concurred by this commission to be allowable in audit, provided that the declared policy of the state that all resources must be managed, expended or utilized in accordance with law and regulation, and safeguarded against loss or wastage through illegal or improper disposition must be faithfully adhered to.    Hence, to properly regulate the use of the same, a well defined authority must be issued to avoid wastage of public funds.  Likewise, the necessity and reasonableness of the amount must be taken into consideration.  Charges of the same must be limited to telephone expense – mobile account.RECOMMENDATION FOR TANDAG CITY GOVERNMENT:       Advise the Sangguniang Panlungsod to prepare a well-defined guidelines in the availment and limitation of cellcards taking into consideration the nature of their work assignment for the approval of the Local Chief Executive. Advise the City Budget Officer & City Accountant to limit charges for the purchase of cell-cards to telephone expense mobile account appropriation only.

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Written by rage · Filed Under Tandag City 

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