1.4. However, these PPE balances were not properly established or accounted for because
the Inventory Committee was not able to conduct a complete physical count of PPE
and reconcile it with the financial statements at year-end.
1.5. Our audit disclosed that an inventory committee was established by an executive
order signed by the Municipal Mayor on August 12, 2022. The committee comprised
the Municipal Treasurer as Chairman, the Revenue Collection Clerk II as Vice
Chairman, and five members, all personnel from the Municipal Treasurer’s Office.
However, it is noted that the committee's composition does not align with the COA
Circular, which requires at least one member each from the accounting and property
offices.
1.6. The Municipal Treasurer explained that it was agreed at an inventory committee
meeting that all departments would conduct their own physical counts in accordance
with the guidelines outlined in the one-time cleansing circular. He emphasized that
all department heads or their representatives were invited to observe and participate
in the physical counts taking place at the Accounting Office for a hands-on
experience aimed at ensuring consistency and accuracy when applying the same
procedures in their respective departments, with guidance from the inventory
committee members when necessary. Each department was required to submit a list
of properties to the Inventory Committee for consolidation after the count.
1.7. An initial physical count was conducted on August 23, 2023. However, some
departments submitted their reports only in December 2024, which contributed to the
delayed consolidation. Thus, the physical count was not completed by December 31,
2024, and since no report on the partial count was prepared, it is difficult to determine
the percentage of completion.
1.8. He further explained that the inventory committee faced challenges in completing the
property count, especially for items located outside the offices. This was mainly
because three of the seven committee members were no longer serving due to
resignations in May 2023 and November 2023, along with a retirement in March
2024. This left only four members, including himself, to carry out the one-time
cleansing of properties. However, since his responsibilities as Municipal Treasurer
limited his direct involvement in the inventory process, he issued Office Order No.
2-2023 on December 1, 2023, designating Ms. Reslyn E. Depillo, RCC I, as the
Inventory Unit Head.
1.9. The Municipal Treasurer also informed us that the Inventory Committee still needs
to validate the inventory reports submitted by the department heads, reconcile them
with the accounting records, and assess whether the procedures followed by the latter
during their respective physical counts complied with the one-time cleansing
guidelines.
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