PPE Account Amount
Other Property, Plant and Equipment 1,004,525.42
Total ₱ 19,531,243.91
1.8 The accountability of the non-existing or missing PPE could be established
following the disposition procedures enumerated under Section 7.0 of COA
Circular No. 2020-006 which include, among others, the investigation of the loss,
documentation of the missing items and for the accountable personnel to produce
the item or pay the depreciated replacement cost thereof, as the case may be.
1.9 The existence of discrepancies in the PPE account balances between the
Statement of Financial Position and ICF due to unrecociled differences casted
doubt on the validity and reliability of the PPE account balance of
₱2,460,632,084.90.
1.10 This observation was communicated to Management through Audit Observation
Memorandum (AOM) No. 2025-05(24) dated April 8, 2025.
1.11 We recommended and Management agreed to require the City Accountant
and the Property and Supply Officer to reconcile the records, investigate any
discrepancies, and make the necessary procedures in the disposition of
missing PPEs to ensure the accurate reflection of the PPE account balances.
1.12 Management explained the difference per account as presented below:
Account Difference Explanation/Justification
Transportation The difference is reported in the list of
2,965,796.00
Equipment non-existing/Missing PPEs
Furniture, Fixtures The difference is reported in the list of
154,800.00
and Books non-existing/Missing PPEs
Other property, plant The difference is reported in the list of
1,004,525.42
and equipment non-existing/Missing PPEs
Buildings and other The amount is fully reconciled in the
20,957,451.15
structures updated Inventory Count Form.
Machinery and The amount is fully reconciled in the
15,544,763.31
equipment updated Inventory Count Form.
Infrastructure Assets 745,286.26 The amount is currently being traced.
1.13 Furthermore, the concerned departments were given until June 30, 2025, to
conduct an internal investigation on the non-existing/missing PPEs, after which
the Investigation Committee will formally conduct its own investigation and
render its report and recommendation concerning the matter.
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