Status of
Ref. Observation Recommendations Implementation / Results
of Validation
and adversely affecting the fairness
of presentation of their balances in
the financial statements.
2021 20) The accuracy and reliability of 52) Management direct the CAO, Unimplemented
AAR, the balance of the LRN account CEO and CGSO to strictly This is reiterated in
AO totaling ₱215,925,853.92 could not comply with the accounting and the audit of CY 2024
No.4, be ascertained due to the: (a) non- reporting guidelines on local accounts as AO No.
page conduct of inventory of local roads roads asset management system, 1.
40 and non-preparation of a separate and to earnestly perform their
RPCLRN; (b) non-maintenance of respective duties and
the LRNLC and LRNPC showing responsibilities set forth under
complete description and cost COA Circular No. 2015-008
segregation of LRN components; (c) dated November 23, 2015.
non-provision of depreciation for
LRN items; and (d) lack of full 53) Henceforth, the Inventory Unimplemented
disclosure of the total road networks Committee conduct the annual This is reiterated in
in the Notes to the Financial physical count of all its LRN in the audit of CY 2024
Statements, contrary to COA accordance with regulations, accounts as AO No.
Circular No. 2015-008 dated making sure to produce the 1.
November 23, 2015, thereby, details necessary to be reported
affecting the fair presentation of the separately in the RPCLRN for
account in the financial statements. submission to the Auditor and
Accounting Office not later than
January 31 of each year. The
RPCLRN shall be reconciled
with the accounting records and
the necessary adjusting entries be
prepared before the statement
date.
2021 21) Property, Plant and Equipment 54) The City Mayor require the City Unimplemented
AAR, under the TF totaling Accountant to record the transfer PPE had been
AO ₱40,924,530.37, inclusive of of the various PPE accounts partially transferred
No.5, ₱2,765,803.85 under Other under the TF to the GF. to the GF.
page Structures which were recorded as a Corresponding depreciation
44 lump-sum amount, were not expenses shall then be provided
transferred to the GF nor provided in the books.
with depreciation allowances
contrary to Sections 97 and 104 (i) 55) The details of the beginning Unimplemented
on the Manuals on the NGAS for balances of Other Structures Reconciliation of
LGUs Volume I, Paragraph 71 of totaling ₱2,765,803.85 be Other Structures
IPSAS 17 and COA Circular No. provided before these are Account was
2015-008 dated November 23, 2015, transferred to the GF. ongoing.
thus, resulting in the understatement
of the PPE accounts and
depreciation expenses in the GF.
2021 22) The lack of proper planning, The City Mayor direct the City
AAR, accumulation of work backlogs and Engineer to:
AO failure to act decisively on erring
No.7, contractors resulted in the low rate of 56) Conduct an in-depth assessment Unimplemented
page implementation of projects funded of the work status of existing Ongoing
49 out of the 20 per cent Development projects and to impose the implementation of the
Fund, where out of 125 current and penalties and sanctions provided recommendation
prior-year projects for under Annexes “E” and “I” of the
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