g. The committee, in coordination with the Property Division, must prepare a
Physical Inventory Plan (PIP) outlining member duties, timelines, and
locations for the inventory.
h. The PIP must be approved by the Head of the Agency and submitted to COA
at least ten days before starting.
i. Property records should be updated and reconciled with accounting records
based on the inventory results.
j. The Circular also details specific procedures for the cleansing process,
including preliminary activities, the inventory process, and reconciliation of
counts with property and accounting records.
2.3. It was observed that the City did not take advantage of the opportunity to conduct a
one-time cleansing of its PPE accounts, as prescribed in COA Circular No. 2020-006.
Although the CGSO successfully prepared the RPCPPE of movable properties as of
December 31, 2024, the agency did not adhere to the general guidelines and specific
procedures outlined in the Circular. It simply conducted the physical count as usual,
without incorporating the key guidelines for one-time cleansing. The members of the
Inventory Committee also did not include a representative from the Accounting
Office.
2.4. The inability to resort to the one-time cleansing of the property accounts resulted in
the unresolved variance of ₱57,969,559.01 between the movable PPE balances in the
RPCPPE and those recorded in the agency’s books of accounts, as shown below:
Per Financial
Movable PPE Per RPCPPE Variance
Statements
MACHINERY AND EQUIPMENT
1 Machinery ₱52,000.00 ₱52,000.00 -
2 Office Equipment 21,037,269.53 20,071,984.21 ₱965,285.32
Information and Communication
3 38,151,493.18 35,610,988.65 2,540,504.53
Technology Equipment
4 Agricultural and Forestry Equipment 3,587,619.00 6,322,900.00 (2,735,281.00)
5 Marine and Fishery Equipment 589,652.34 54,000.00 535,652.34
6 Communication Equipment 3,707,321.80 3,588,726.75 118,595.05
7 Construction and Heavy Equipment 145,898,749.89 104,953,128.00 40,945,621.89
8 Disaster Response and Rescue Equipment 61,239,176.00 36,388,649.00 24,850,527.00
9 Military, Police and Security Equipment 28,692,308.00 33,929,000.00 (5,236,692.00)
10 Medical Equipment 2,040,571.20 6,231,912.52 (4,191,341.32)
11 Sports Equipment 82,000.00 79,103.00 2,897.00
12 Technical and Scientific Equipment 1,425,711.55 1,220,109.58 205,601.97
13 Other Machinery and Equipment 34,572,621.04 48,698,743.59 (14,126,122.55)
TRANSPORTATION EQUIPMENT
14 Motor Vehicles 117,588,659.23 222,540,804.29 (104,952,145.06)
15 Watercrafts 4,334,430.25 6,778,634.12 (2,444,203.87)
16 Other Transportation Equipment 19,933,000.00 14,451,000.00 5,482,000.00
FURNITURE, FIXTURES & BOOKS
17 Furniture and Fixtures 2,567,494.51 2,547,131.59 20,362.92
18 Books 58,450.00 677,270.78 (618,820.78)
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