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VIII Team I – Audit Group “G” Province of Biliran
AOM No. 2010-004 Date : February 1, 2011 AUDIT OBSERVATION MEMORANDUM (AOM) For : XXX address Attention: XXX - Supply Officer XXX- Supply Officer Designate
We have conducted audit of the CY 2010 disbursements on procurement submitted by the agency and observed the following deficiencies/errors:
Copies of Purchase Orders (PO) and their supporting documents on purchases of various supplies and equipments made by the Division Office in CY 2010 aggregating P3,532,053.70, were not submitted to the Auditor within the prescribed period of five (5) days from issuance thereof, contrary to the provision of item 3.2 of COA Circular No. 2009-001 dated February 12, 2009 thus, resulting in consummated transactions not being reviewed as to compliance with applicable laws, rules and regulations and reasonableness of the prices of the items bought. Audit disclosed that in CY 2010 the agency has procured various supplies and equipments for use in its operation. Further observed, that there are transactions where copies of the Purchase Orders and its supporting documents were not submitted within the prescribed period of five (5) days from its issuance totaling P3,532,053.70 (see Annex “A” for details). There were even instances where the Purchase Orders were submitted to the Auditor upon delivery of the items bought, hence the transactions were already consummated without being reviewed as to compliance with applicable laws, rules and regulations and reasonableness of the prices of the items bought.
be submitted to the Auditor concerned.2 of COA Circular No.Item 3. by legitimate suppliers. the Technical Services Office. xxxx. the Auditor shall review and point out to management defects and/or deficiencies. of submitting the Purchase Orders upon delivery of the items bought. XXX SA III – Audit Team Leader XXX SA V – Supervising Auditor Proof of Receipt of AOM: _______________________ Signature Over Printed Name Date: _________________ . as required in COA Circular No. the Procurement Service. and evaluation of the price of the items bought in case of doubt as to its reasonableness. if any. In case of doubt as to the reasonableness of the price of the items purchased. b) Avoid any instance. Within the same period. the Auditor shall conduct a canvass thereof making use of price references provided. 2009 states that.” Recommendations We recommend that management: a) Submit Purchase Orders within the prescribed period of five (5) days from the date of its issuance to afford the Auditor time to make an initial review of the PO to point to management any defects and/or deficiencies. “ a copy of any purchase order irrespective of amount. within five (5) working days from issuance thereof. other government agencies with similar procurement and those posted in the internet. 2009-001. shall. 2009-001 dated February 12. among others. and each and every supporting document. if any. May we have your comments on the foregoing audit observations within five (5) calendar days from receipt hereof.