1.5. The City Engineering Office (CEO) had, in the previous year, submitted a partial
RPCLRN but explained that they had difficulty in providing the complete details
because some of the road networks were no longer in their original condition due to
the passage of time. Additionally, others had overlapping works done by other
government agencies, such as the Provincial Government and the DPWH, at the same
project site.
1.6. Consequently, the RPCLRN was not completed which should have shown the Road
Network ID No., road name, components which include road lots, pavements,
drainage and slope protection structures and other miscellaneous structures, the date
it was constructed, its cost and its physical condition. The City General Services
Officer likewise did not render the annual RLRN as required under Item VI.1 of the
same Circular.
Non-maintenance of the LRNLC and LRNPC showing complete description and
cost segregation of LRN components
1.7. Item V of the Circular partly provides that Management shall segregate and recognize
the cost of each component of the local roads with identified cost, determine the
components of local roads identified in the inventory without corresponding cost, and
recognize the cost of each component at its fair value.
1.8. Item VII enumerates the duties and responsibilities of the Local Accountant and the
City General Services Officer (CGSO) which include, among others, the following:
a. Local Accountant - Prepare the Journal Voucher to record the beginning
balance of the LRN and its component in the general ledger and the
LRNLC (Annex D of the Circular), respectively;
b. CGSO - Keep a complete LRNPC for all roads and its components
(Annex E of the Circular).
1.9. Further, Item VII.c.1 of the same Circular requires the City Engineer to provide the
local accountant and general services officer with a complete description and cost
segregation of the road components for road projects.
1.10. As defined under Item III.4 of the Circular, road asset components are “the sub-
components of a road which, having different useful life spans, need to be booked
and depreciated separately. They include: road lot, road pavement, drainage and
slope protection structures and other miscellaneous structures.”
1.11. The City Accounting Office (CAO) maintains a schedule of its infrastructure
accounts as reported in the Property, Plant and Equipment (PPE) Schedule, which
includes, among others, a listing of constructed Road Networks. However, it was not
able to maintain the LRNLC for each road project and its road asset components
because the CEO did not provide complete descriptions and cost segregation,
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