Ref.
Audit Observations Audit Recommendations Status of Implementation
Depreciation, could not be ascertained due management system and earnestly perform Office and total road networks
to (a) non-conduct of inventory of local their respective duties and responsibilities booked had already been
roads and non-preparation of the Report of set forth under COA Circular No. 2015-008 disclosed in the Notes to FS.
the Local Road Network (RLRN) and dated October 23, 2015. However, some accounting and
Report on the Physical Count of Local reporting guidelines still needed
Road Network (RPCLRN); (b) non- to be implemented.
segregation of the cost of each road
component of the local road projects in the 16. We further recommended that, henceforth, Unimplemented
books of accounts; (c) non-maintenance of the Inventory Committee conduct an annual No physical count of the total
the Local Road Network Ledger Card physical count of all its Local Road road networks had been
(LRNLC) by the Municipal Accountant Networks and the results thereof reported in conducted in CY 2024. The LGU
and Local Road Inventory and Road Map the RPCLRN to be submitted to the Auditor had not ascertained the total road
and Local Road Network Property Card and Accounting Unit not later than January network within the Municipality
(LRNPC) by the Property Officer; and (d) 31 of each year. The RPCLRN shall be due to the lack of turnover of
non-disclosure of the total road networks reconciled with the accounting records, and projects undertaken by the
in the Notes to the Financial Statements the necessary adjusting entries be prepared DPWH and the Province.
(FS), contrary to COA Circular No. 2015- before the statement date. Management also had yet to
008 dated November 23, 2015, thereby, request a proper turnover for the
affecting the fair presentation of the said projects. The only basis
account in the financial statements. available for the physical count is
the record of municipality-funded
projects.
AAR 12. The year-end balance of the Loans 17. We recommended that the Municipal Implemented
2022 Payable account amounting to Accountant (MA) ensure that loan
p. 42 ₱108,205,893.05 did not reconcile with the adjustments such as repricing be effected in
balance per the confirmation letter from the proper accounting period to reflect the
Land Bank of the Philippines (LBP) due to correct balance of the loans payable.
a loan repricing effective CY 2023 but was
adjusted by the Municipal Accountant in
CY 2022 books of accounts, resulting to a
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