1.3.1. Non-conduct of the physical count of PPE
1.3.1.1. Section 5.1 of the Circular provides that each government agency shall
conduct a physical count of all its PPE, whether acquired through
purchase or donation, including those constructed by the
administration and found at the station.
1.3.1.2. In an inquiry, the Municipal Accountant disclosed that a physical
count of the Municipality’s PPE had not been conducted in CY 2024.
1.3.1.3. Moreover, in another phone inquiry, the Municipal Treasurer
mentioned that no Office Order was issued to create the Inventory
Committee, which would focus on and carry out the physical count of
all PPEs.
1.3.1.4. The inability to verify the existence of PPE and the accuracy of book
balances totaling ₱401,762,927.72 as of December 31, 2024, raises
significant concerns about the fair presentation of these accounts in
the financial statements.
1.3.2. Non-adoption of unique property numbers for PPE and absence of property
stickers
1.3.2.1. Section 5.6 of the Circular provides that each government agency shall
adopt a uniform property identification system for PPE wherein a
unique Property Number shall be assigned for each PPE item, using
the following numbering system:
1.3.2.2. The codes for the PPE sub-major account group and General Ledger
account correspond to those provided in the Revised Chart of
Accounts prescribed under the Accounting Manuals of the respective
Sectors (National, Local, and Corporate). Additional digits may be
used for serial number and location/office, as necessary.
1.3.2.3. Moreover, Section 7 of the Circular further provides that for easy
identification, the Property Number shall be prominently shown in the
property sticker, in addition to the following vital information on the
PPE item:
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