Per Financial
Movable PPE Per RPCPPE Variance
Statements
OTHER PPE
19 Work/Zoo Animals 366,800.00 540,000.00 (173,200.00)
20 Other PPE 2,855,522.29 2,014,322.74 841,199.55
TOTAL PPE ₱488,780,849.81 ₱546,750,408.82 (₱57,969,559.01)
2.5. More than five years have passed since the Circular came into effect. This extended
period should have been sufficient for CGSO to initiate and complete the preliminary
activities and to begin verifying the PPE inventory prior to the commencement of the
physical inventory by the Inventory Committee. Had the City exerted effort to take
full advantage of the one-time cleansing opportunity, it is likely that the PPE balances
could have been reconciled properly. This would have allowed for the resolution of
the noted variance and the elimination of unidentifiable items. Ultimately, it would
have led to the establishment of correct PPE balances that are verifiable in terms of
their existence, condition, and accountability.
2.6. It may be favorably noted that the City had earlier expressed its interest in availing
of the one-time cleansing of PPE. It had likewise written the Commission on Audit
for the possibility of attending a seminar on the matter. However, the latter has yet to
give a schedule since the training arm of the Commission is swamped with equally
important trainings, both in-house trainings for auditors and requests from other
government agencies. Moreover, the City Accountant and the City Internal Auditor
provided information that a webinar was conducted last December 2024 by the
Association of Government Internal Auditors, Inc., where some of the City’s
department heads were also invited to attend. However, they are currently still in the
planning stage.
2.7. Due to the unresolved discrepancy of ₱57,969,559.01, the validity, existence, and
accuracy of the movable PPE accounts totaling ₱488,780,849.81, as reported in the
CY 2024 financial statements, cannot be confirmed. As a result, these financial
statements cannot be relied upon, and the fair presentation of the PPE accounts may
be compromised.
2.8. We recommended that the City Mayor:
2.8.1. Reorganize the Inventory Committee to comply with the minimum
requirement in terms of membership;
2.8.2. Direct the revamped Inventory Committee to carry out the one-time
cleansing of PPE, in accordance with the provisions of COA Circular No.
2020-006;
2.8.3. Instruct the Inventory Committee to submit the RPCPPE and other
required reports to the Audit Team, ensuring full compliance with COA
Circular No. 2020-006; and
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