a. One-Time Cleansing of account balances
Several PPE items are non-moving for more than 10 years. There are ongoing efforts
to reconcile the physical count vis-à-vis the accounting records. For the ensuing year,
the Accounting Unit will take up the necessary accounting entries to write-off/drop
from the books of accounts the unreconciled PPE items pursuant to COA Circular No.
2020-006.
b. Residual Value
The LGU measured the residual value of all items of property, plant, and equipment,
and is set up at five percent (5%) of the acquisition cost. During the current financial
year, the LGU reviewed the estimated useful lives and residual values of property,
plant, and equipment, where appropriate. No residual value shall be provided for the
depreciable components of the road network system.
c. Method of Depreciation and Estimated Useful Life
The LGU adopts a straight-line method of depreciation. The estimated useful life of
the assets is as follows:
Estimated Useful
Property, Plant, and Equipment
Life (in years)
Machinery 10
Office Equipment 5
Information and Communication Technology 5
Agriculture and Forestry Equipment 10
Marine and Fishery Equipment 10
Communication Equipment 10
Construction and Heavy Equipment 10
Disaster Response and Rescue Equipment 10
Military, Police, and Security Equipment 10
Medical Equipment 10
Other Machinery and Equipment 10
Motor Vehicles 7
Watercrafts 10
Furniture and Fixtures 10
Books 10
Other Property, Plant and Equipment 5
d. Road Networks
The LGU has a total of 182,683.13 kilometers of roads with a total cost of
₱169,483,340.83. For the year ended, the agency spent a total of ₱18,667,411.77 for
local road additions, and ₱479,145.00 for the regular maintenance.
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