Account Correct
Date DV No. Item Description Amount Debited Account
Label of DRRM Semi-
temporary shelter Other Expendable
12-11-24 100-2024-10-5875 facility 40,250.00 MOOE DRRE
Total ₱407,073.00
5.6 The summary of misstatement is presented below:
Incorrect Account Debited Correct Account Amount
Other Supplies & Materials
Inventory Semi-Expendable DRRE ₱ 168,334.00
Other MOOE Semi-Expendable DRRE 40,250.00
Sub-total ₱ 208,584.00
Other PPE DRR Equipment 99,500.00
Semi-Expendable DRRM DRR Equipment 98,989.00
Sub-total ₱ 198,489.00
Total ₱ 407,073.00
5.7 Since these items were procured for LDRRM operations and activities, those with a
unit cost of ₱50,000.00 and above should have been recorded under the account
Disaster Response and Rescue Equipment (1-07-05-090), while those below the
capitalization threshold should have been recorded under the account Semi-
Expendable Disaster Response and Rescue Equipment (1-04-05-080).
5.8 As shown, the accounts Other Supplies and Materials Inventory (₱168,334.00), Other
MOOE (₱40,250.00), and Other Property, Plant and Equipment (₱99,500.00) were
overstated. Meanwhile, Semi-Expendable DRRE was understated by ₱109,595.00
and DRR Equipment by ₱198,489.00.
5.9 Furthermore, depreciation expense for Other PPE was overstated, while no
depreciation expense was recognized for Disaster Response and Rescue Equipment.
5.10 These accounting errors resulted in the misstatement of affected accounts in the
financial statements as of December 31, 2024.
5.11 We recommended that the Municipal Accountant reclassify the costs of various
supplies and equipment recorded in the accounts Other Supplies & Materials
Inventory, Other MOOE, and Other PPE to the proper accounts by making the
following adjusting entries:
Semi-Expendable Disaster Response and Rescue Equipment ₱109,595.00
Disaster Response and Rescue Equipment ₱198,489.00
Other Supplies & Materials Inventory ₱168,334.00
Other MOOE 40,250.00
Other PPE 99,500.00
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