Page 59 of 74

                                                                              Appendix D


                                                                           Status of
  Ref             Observations               Recommendations
                                                                        Implementation
                                             recorded     in   their
                                             respective records and
                                             that      the      PCs
                                             maintained by the
                                             Property Unit and the
                                             PPELCs maintained by
                                             the Accounting Unit
                                             are reconciled.

2023 AAR   The accuracy and reliability 7. Management enjoin             Unimplemented
AO No. 2   of the Local Road Network        the          concerned      No action taken by
 page 38   (LRN) account totaling           department heads to         management.
           ₱192,461,004.67 could not        strictly comply with
           be ascertained due to: (a)       the accounting and
           non-conduct of inventory of      reporting guidelines
           local roads and non-             on the local roads
           preparation of the Report on     asset     management
           the Physical Count of Local      system and earnestly
           Road Network (RPCLRN);           perform            their
           and (b) non-maintenance of       respective duties and
           the Local Road Network           responsibilities     set
           Ledger Card (LRNLC) and          forth under COA
           Local      Road      Network     Circular No. 2015-
           Property Card (LRNPC),           008 dated October 23,
           contrary to COA Circular         2015.
           No.      2015-008       dated
           November        23,    2015, 8. The             Inventory     Unimplemented
           thereby affecting the fair      Committee through the        No        physical
           presentation of the account     General          Services    inventory     was
           in the financial statements.    Offices conduct an           conducted.
                                           annual physical count
                                           of all LRN and report
                                           the results thereof in the
                                           RPCLRN          to      be
                                           submitted       to     the
                                           Auditor and Accounting
                                           Unit not later than
                                           January 31 of each year.
                                           The RPCLRN shall be
                                           reconciled with the
                                           accounting records, and
                                           the necessary adjusting
                                           entries will be prepared