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                                                                                               Status of
Ref.                Observation                         Recommendations                 Implementation / Results
                                                                                             of Validation
         CIP accounts in the       financial       reconciliation and preparation of    CIP accounts are still
         statements.                               the required entries to arrive at         subject to
                                                   the correct balances and status of      reconciliation.
                                                   the 64 completed projects under
                                                   the CIP accounts.

                                              6) Also, these completed projects be         Unimplemented
                                                 transferred to the corresponding           The completed
                                                 PPE accounts and consequently           projects were not yet
                                                 recognize their depreciation             transferred to the
                                                 expenses reckoned from the              corresponding PPE
                                                 project’s date of completion.                accounts.
2023     3) Three completed projects The City Accountant record the
AAR,     under       the      TF     totaling necessary entries in the TF and GF
 AO      ₱14,813,858.60 remained recorded books as follows:
No. 3,   in the CIP account which resulted in
page     the      non-transfer    of      the TF Books:
 39      corresponding PPE account to the
         GF contrary to Section 104, 1(i) of 7) Record the transfer of the cost of          Implemented
         the Manual on NGAS for LGUs and         the three completed projects from       The City Accountant
         IPSAS 17, hence, understating the       the CIP – Infrastructure Assets          prepared JEV No.
         PPE-Road Networks account by            account to the Road Networks            300-24-03-23 dated
         ₱14,813,858.60 and depreciation         account;                                  March 31, 2024.
         expenses in the GF by ₱41,149.61.
                                              8) Record the transfer of the Road            Implemented
                                                 Networks account to the GF;             The City Accountant
                                                                                          prepared JEV No.
                                                                                         300-24-03-24 dated
                                                                                           March 31, 2024.

                                               GF Books:

                                               9) Record the receipt of the three           Implemented
                                                  completed projects from TF;            The City Accountant
                                                                                          prepared JEV No.
                                                                                           100-24-03-0132
                                                                                           dated March 31,
                                                                                                2024.

                                               10) Record     the    corresponding          Implemented
                                                   depreciation expenses; and           The City Accountant
                                                                                        prepared JEV No.
                                                                                        100-24-03-133 dated
                                                                                        March 31, 2024.

                                               11) Henceforth, the City Accountant          Unimplemented
                                                   regularly monitor the City’s CIP       As of December 31,
                                                   accounts to ensure the timely             2024, the CIP
                                                   transfer of completed projects to     accounts still include
                                                   the corresponding PPE accounts.         projects that were
                                                                                         physically completed
                                                                                            but were not yet
                                                                                           transferred to the



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