MAASIN City’s P11.22 million fuel expenses in 2023 is going through a fine-tooth comb after government auditors found discrepancies in record keeping, deficient documentation, and lax monitoring of compliance with procedures.
The 2023 audit report on the city government (Southern Leyte) released on May 10, 2024 raised questions regarding the correctness of reported quantities of fuel withdrawn from private gas stations as opposed to the reported consumption for certain periods.
“Procurement of fuel, lubricants, and oil was not duly supported with proper documentation to validate the receipt and issuance thereof. Withdrawals of 8,736 liters of fuel with the city’s supplier were not supported with duly approved withdrawal slips,” the audit team said
Auditors noted that the city does not maintain its own gasoline depot so all of its fuel needs are sourced from local suppliers. The private gasoline stations have existing contracts with the local government to provide fuel for their vehicles and equipment subject to certain documentary requirements.
Under the existing procedure, a driver must present three copies of a fuel withdrawal slip approved by the department head. The supplier keeps one copy and issues an invoice showing the volume of fuel given while the driver retains two copies to be returned to the office/department he is servicing.
The driver is also required to submit a monthly summary of the official trips and vehicle/equipment usage which will be compared with the department’s own summary. Under ideal situations, the two summaries should not vary from each other.
In actual practice, the required paperwork was largely ignored, resulting in patchy records that defied efforts at validation.
Among the findings that stood out were two monthly reports of official travels not backed by the driver’s trip tickets; charging of 49 liters of fuel at P99.95 per liter between January 16 to 31, 2023 that was not reported; error in reporting the volume of fuel at 26 liters instead of 90 liters purchased at 89.95 per liter for April 16 to 30, 2023; and the discrepancy between the withdrawal slip showing 584 liters while the trip ticket recorded only 529 liters.
“These deficiencies have created uncertainties on the correctness and reasonableness of the reported quantities of fuel withdrawal and consumption. It can be observed that the City lacks proper monitoring and control measures in the consumption of fuel, oil, and lubricants, causing doubt on the propriety of the said expenses,” auditors said.
Notified of these findings, the City Accountant said she would coordinate with the concerned officers to implement the audit recommendations on the proper recording of fuel usage.
The City General Services Officer agreed to implement stricter monitoring for compliance with prescribed forms, recording of entries, and validation of figures.
