1.3.2.3.1. Description of the property;
1.3.2.3.2. Model Number;
1.3.2.3.3. Serial Number;
1.3.2.3.4. Acquisition Date/Cost;
1.3.2.3.5. Person Accountable; and
1.3.2.3.6. Space for the validation/signature of the Inventory
Committee.
1.3.2.4. However, our review of the PPE Schedule submitted by the Municipal
Accountant showed that the unique Property Number required for
each PPE item was not adopted. Additionally, none of the PPE items
were tagged with property stickers.
1.3.2.5. As a result, accountability and control over the custody and use of PPE
could not be established. Furthermore, the existence and condition of
all PPE owned by the agency could not be ascertained.
1.3.3. Non-preparation of the Physical Inventory Plan (PIP)
1.3.3.1. Sections 5.9, 5.10, and 5.11 of the Circular require that, in
coordination with the Property Division/Unit, the Inventory
Committee shall plan/strategize on the conduct and complete the
physical inventory within the prescribed period. The PIP, which shall
be approved by the Head of the Agency, is required to be submitted to
the COA Audit Team by the Inventory Committee at least 10 calendar
days before the scheduled start of inventory activities.
1.3.3.2. However, due to the non-creation of the Inventory Committee, the PIP
was not prepared. As a result, specific assignments and duties of the
Committee members, the cut-off date, and a detailed schedule
outlining the dates and locations for the inventory activities, from start
to target completion, were not established.
1.4. The LGU’s non-compliance with the provisions outlined in COA Circular No. 2020-
006 dated January 31, 2020, negatively impacts the fairness of the financial
statements’ presentation and may also deprive the government of access to reliable
and useful information in decision-making and accountability for these assets.
1.5. We recommended and the Municipal Mayor agreed to issue an Office Order
creating the Inventory Committee with adequate members, including at least
one member from each of the Accounting and Property Divisions/Units, and
temporarily relieve them of all their regular duties until the physical inventory
process is complete.
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