account in the financial statements.
1.5 The CGSO spearheaded a coordination meeting with concerned offices and
departments regarding the conduct of inventory and use of prescribed templates.
Moreover, CGSO will endeavor to conduct a physical inventory count in view of
the implementation of the audit recommendations.
1.6 We reiterated our recommendations and Management agreed to:
a. Require the Inventory Committee to conduct an actual count of
inventories, prepare the RPCI, and submit the same to the Office of the
Auditor, pursuant to Section 124 of the Manual on NGAS;
b. Ensure that CGSO maintains and consolidates property records of all
inventory accounts, and the CGSO and the City Accountant reconcile
both property and accounting records;
c. In coordination with CGSO, institutionalize the use of RIS in accordance
with the inventory process in the control of inventory detailed in Section
122 of the Manual on NGAS;
d. Instruct the CGSO to consolidate weekly the RIS using the SSMI and
submit the same to the Accountant as the basis for proper recording of
expenditures using appropriate expenditure accounts; and
e. Examine all dormant accounts and, where applicable, request for relief
of accountability for inventories that are lost, missing, and/or cannot be
located.
Road Networks account totaling ₱97,548,062.80 could not be fully ascertained
2. The accuracy and reliability of the Road Networks account totaling
₱97,548,062.80 could not be ascertained due to incomplete inventory reports,
ledger and property cards, absence of depreciation and non-disclosure of the total
road networks in the Notes to the FS, contrary to COA Circular No. 2015-008
dated November 23, 2015, thereby affecting the fair presentation of the account in
the financial statements.
2.1 On November 23, 2015, COA Circular No. 2015-008 was issued, prescribing the
Accounting and Reporting Guidelines for the Local Roads Asset Management
System to ensure the fair presentation of the account Infrastructure Assets in the
financial statements.
2.2 The Circular specifically outlines the accounting guidelines for local roads and
road network systems concerning initial recognition, subsequent measurement,
and derecognition to ensure that all roads are accurately valued and recorded. It
also includes the transitory provisions for transferring the local roads accounts
from the Registry of Public Infrastructure to the books of accounts of the LGU
responsible for managing these roads.
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