b. General Services Officer
1. Maintain a Local Road Inventory and Road Map; and
2. Keep a complete Local Road Network Property Card for all roads
and its components.
c. City Engineer
1. Provide the local accountant and the general services officer with
complete description and segregation of road components for
road projects.
d. Local Chief Executive (LCE)
1. Enjoin the departement heads’ compliance with the requirements
of the COA circular.
2.3.5 We requested copies of relevant reports and ledgers pertaining to Road
Networks from the concerned offices. The Accounting Office provided
Subsidiary Ledgers for the Road Networks account, which include the
following details: Name of Property, Description, RD/RCI Number,
Responsibility Center, ALOBS Number, Date Acquired, Account Code,
and Total Cost. However, these lacked the necessary cost segregation of
road components, making it difficult to properly account for each
infrastructure element.
2.3.6 Additionally, while the City Engineer’s Office (CEO) was able to submit
records for projects undertaken from Calendar Years (CY) 2014 to 2021,
records for other road projects had yet to be retrieved. This gap in
documentation limits the ability to verify and reconcile the complete list
of road assets.
2.3.7 Furthermore, the CGSO has maintained a Local Road Inventory and Road
Map, but instead of using the required LRNPCs, they continued to utilize
the LRNLCs. This deviation from prescribed documentation practices
further contributes to the lack of clarity in asset valuation.
2.3.8 Due to the incomplete LRNLC and LRNPC, the Audit Team could not
fully ascertain each component of the local roads with identified cost as
provided under Item V of the Circular, which partly provides that
Management shall (1) segregate and recognize the cost of each component
of the local road with identified cost; and (2) determine the components
of local roads identified in the inventory without corresponding cost and
recognize the cost of each component at its fair value.
2.3.9 As defined under Item III.4 of the Circular, road asset components are the
sub- components of a road which, having different useful life spans, need
to be booked and depreciated separately. They include road lot, road
pavement, drainage and slope protection structures and other
miscellaneous structures.
2.3.10 In the absence of complete LRNLCs and LRNPCs, reconciliation of both
records with the RPCLRN could not be performed, thus the balance of the
Road Networks account remains uncertain.
55
