1.12. We recommended that the Municipal Accountant:
1.12.1. Coordinate with the Municipal Engineer in identifying the projects that
have been completed but remained recorded under the CIP accounts;
1.12.2. Record the transfer of the costs of the completed projects from the CIP
accounts to the respective PPE accounts once these are identified;
1.12.3. Record the transfer of the PPE accounts from the Trust Fund to the
General Fund and subsequently record the receipt thereof;
1.12.4. Record the corresponding depreciation expenses for the current and
prior years;
1.13. We further recommended that the Municipal Accountant and the Municipal
Engineer establish a regular monitoring process of the Municipality’s CIP
accounts to ensure the timely transfer of completed projects to the appropriate
PPE accounts.
1.14. The Municipal Accountant commented that when she assumed office, several
projects from prior years were still recorded under the CIP accounts. From CY 2022
to CY 2024, a total of 124 completed projects costing ₱90,053,319.10 under the
General Fund were transferred from the CIP accounts to the appropriate PPE
accounts. She added that for the remaining projects still recorded under the CIP
accounts, she will coordinate with the Municipal Engineer to identify which of
these are already completed and ready for transfer to the appropriate PPE accounts.
She further stated that completed projects under the Trust Fund will be transferred
to the General Fund, and the corresponding depreciation expenses for the current
and prior years will also be recorded. She also mentioned that since CY 2022, the
timely transfer of completed projects from the CIP accounts to the appropriate PPE
accounts has been carried out.
1.15. The Auditor wishes to emphasize that, while the Municipal Accountant claimed that
the timely transfer of completed projects from the CIP accounts to the appropriate
PPE accounts has been implemented since CY 2022, this appears inconsistent with
the statements made by the Municipal Mayor during the exit conference. The
Mayor acknowledged that several completed projects remain recorded under the
CIP accounts, indicating that not all completed infrastructure has been properly
reclassified. This discrepancy suggests that further validation and coordination with
the concerned offices are necessary to ensure the accuracy and completeness of the
transfers and related depreciation entries.
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