GOVERNMENT auditors have called out the Government Arsenal (GA) over a P519.27 million discrepancy in its inventory of raw materials, supplies, and equipment between the agency’s accounting records and a physical count conducted in 2021.
Based on the GA’s books, its total inventory is supposed to be worth P2.363 billion but the Report on the Physical Count of Inventories (RPCI) could only come up with P1.844 billion.
The biggest variance amounting to P471.997 million was found under “inventories held for manufacturing” consisting of raw materials (P349.1 million), work in progress (P84.15 million), and finished goods (P38.74 million).
Another P48.56 million difference was also listed under ‘inventories held for consumption” which included other supplies and materials (P42.33 million), construction materials (P2.48 million), office supplies (P1.52 million), and fuel, oil, and lubricants (P1.44 million).
These findings were found in the 2021 audit of GA, released last April 18.
Government Arsenal is an agency under the Department of National Defense that manufacturers small arms ammunition and repairs firearms for the Armed Forces and the PNP.
It occupies a 370-hectare complex in a defense industrial estate in Limay, Bataan and employs 883 individuals, including 594 permanent personnel and 289 contract of service hires as of 2021.
The Commission on Audit noted that the agency incurred lengthy delays in submitting the results of the physical count that was supposed to be conducted twice a year and the report turned in every July 31 and February 2.
“However, the Reports on the Physical Count of Inventories (RPCI) were submitted only on November 19, 2021 and February 2, 2022 which are beyond the prescribed due dates, …precluding the Audit Team from conducting prompt review and analysis of the said reports,” the COA said.
Auditors highlighted that the “finished goods inventory” which had a P38.74 million variance consisted of various finished ammunitions.
