AUDIT OBSERVATION MEMORANDUM NO. 1

AUDIT OBSERVATION MEMORANDUM NO. 1. The Municipal Government of Bulan, Sorsogon failed to submit Monthly Report of Official Travels and the corresponding report of Fuel Consumption of government motor vehicle in violation of pertinent provisions of Section 361 of the Government Accounting and Auditing Manual (GAAM) Vol. I.

DISCUSSION:

Section 361 of GAAM Vol. I provides the following:

“Regulation on the use of government vehicles. Hereunder are the basic rules on the use of government vehicles:

xxx

(e) Use of government vehicles shall be properly controlled and regulated.

1. The use of government vehicles should be through properly accomplished and duly approved driver’s trip ticket which should be serially numbered, a summary of which shall be made at the end of the month in a Monthly Report of Official Travels for audit purposes.

2. All motor vehicles owned by the government should be plainly marked “FOR OFFICIAL USE ONLY,” under which should be written the corresponding name of the Agency operating or using the same. The mark should appear on each side of the motor vehicle.

xxx

(g) Monthly Report of Fuel Consumption of government motor transportation shall be submitted to the auditor within the first ten (10) days of the succeeding month by the Chief, General Services Division or equivalent.”

Records of this Office showed that as of this writing LGU Bulan, Sorsogon failed to submit said Monthly Reports covering the period from January 2006 to July 31, 2008 in open defiance to the aforequoted provisions.

This deficiency in the submission of these required reports deprived the auditor to timely examine and review the transactions made by the LGU Bulan, Sorsogon on its operations.

COA’S RECOMMENDATION:

Require the concerned officials or its equivalent to strictly observe the provisions of Section 361 par (e) & (g) of GAAM Volume I on the submission of mandatory reports, relative to the use of government vehicles and henceforth.

LGU’S COMMENT:

Vehicles maintained by the LGU are used mostly in its waste management and road maintenance programs. They are marked LOCAL GOVERNMENT UNIT OF BULAN and/or ALSA BULAN. Corresponding trip tickets are attached as supporting documents to disbursement vouchers. In compliance with the recommendation, the LGU will mark the vehicles “FOR OFFICIAL USE ONLY.” Further, Monthly Report of Fuel Consumption and other schedules and attachments shall be prepared by the General Services Office and shall be submitted to the commission within the period specified.