3.10.3 Henceforth, ensure that all penalties collected from RPT and SET are
properly recognized as income at the time of collection, in compliance
with Section 23 of the NGAS Manual and COA Circular No. 2015-009.
Erroneous Recording of Public Information Equipment or Device
4. The cost of an outdoor LED wall display, amounting to ₱3,997,000.00, was
erroneously recorded in the books of accounts as Office Equipment (1-07-05-020)
instead of Information and Communication Technology Equipment (1-07-05-030),
hence, both asset accounts and the related depreciation expense accounts were
overstated and understated, respectively, as of December 31, 2024.
4.1 COA Circular No. 2015-009 dated December 1, 2015, prescribes the Revised Chart
of Accounts for Local Government Units to record and report the financial
transactions of LGUs. Annex B thereof contains the description of accounts and the
instructions, which partly provides:
Account Title Information and Communication Technology Equipment
Account Number 1-07-05-030
Normal Balance Debit
Description This account is used to record the cost incurred in the
purchase of information and communication technology
equipment, which includes hardware (computers, printers,
scanners, and the like) and pre-loaded software such as but
not limited to operating systems which are included in the cost
of the computer hardware. This also includes data
communications equipment and such other peripherals and
auxiliary equipment necessary to put the system into
operational mode. Credit this account for derecognition of the
carrying amount of the replaced parts in major repairs, or
disposal.
Account Title Office Equipment
Account Number 1-07-05-020
Normal Balance Debit
Description This account is used to record the cost incurred in the
purchase or assembly or fair value, if acquired through
donation or transfers without cost, of office equipment for use
in government operations. It includes
duplicating/photocopying machines, air conditioning units and
the like. Credit this account for derecognition of the carrying
amount of the replaced parts in major repairs, or disposal.
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