Name of Project Date of Completion Amount
CIP-Infrastructure Assets (1-07-10-020)
1. Concreting of Masaplod Norte Road December 28, 2023 ₱ 719,458.69
2. Improvement/Rehabilitation of Motorpool
with Perimeter Fence, Stockroom and April 08, 2024 3,194,880.47
Equipment
3. Construction of Drainage System in Poblacion
Area April 01, 2024 4,008,335.43
4. Construction of Drainage System at El
Filibusterismo, Districts 2 & 3 April 01, 2024 4,999,450.94
Sub-total ₱ 12,922,125.53
CIP-Buildings and Other Structures (1-07-10-030)
1. Additional Works for the completion of the
Sanitary Land Fill December 28, 2023 ₱ 1,055,169.44
2. Additional Works and Procurement of
Various Fixtures and Equipment for the Dauin
Mega Market July 18, 2024 1,642,962.00
Sub-total ₱ 2,698,131.44
Grand Total ₱ 15,620,256.97
.
1.6 The Municipal Accountant indicated that in addition to the aforementioned completed
projects, there were other projects that were finished in CY 2018, more than six years
as of the end of CY 2024. These completed projects are still classified as CIP-
Infrastructure Assets or CIP-Buildings and Other Structures in the Municipality’s
books of accounts. She attributed this issue to inadequate monitoring. Although the
Municipal Engineering Office generates quarterly reports on the status of project
implementation, there has been a lack of coordination and reconciliation with the
Accounting Office to accurately identify completed projects.
1.7 Our review of the accounting records revealed that subsidiary ledgers for the CIP
projects were not maintained. Instead, all projects were grouped together in one CIP
account per asset classification, making it difficult to ascertain the status of individual
projects. As a result, depreciation expenses for these completed projects have not
been recorded in the books, leading to potential inaccuracies in the Municipality’s
accounting records.
1.8 Due to the aforementioned deficiencies, the CIP-Infrastructure Assets and CIP-
Buildings and Other Structures accounts in the General Fund books were overstated
by at least ₱12,922,125.53 and ₱2,698,131.44, respectively, while depreciation
expenses were understated.
1.9 Management is reminded that adherence to timely capitalization of CIP is an
imperative accounting procedure as the capitalization of the completed projects shall
correspond to the depreciation expenses, in compliance with the matching principle of
accounting.
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