STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT RECOMMENDATIONS
Of the remaining 66 audit recommendations, two were implemented and 64 were unimplemented, as shown in the results of validations
presented below:
Management Status of
Ref. Audit Observation Audit Recommendation
Comment/Action Implementation
AAR The accuracy and reliability of the 1. We recommended that the LCE create an The LCE still had not issued Not
2023 depreciable Property, Plant, and Inventory Committee to conduct an actual an Office Order creating the Implemented
2022 Equipment with reported total physical inventory count of the PPE and Inventory Committee.
2021 carrying value of ₱240,958,937.73 report the results thereof in the RPCPPE to
2016 as of December 31, 2023, could not be submitted to the Auditor and
be ascertained due to: (a) non- Accounting Unit not later than January 31
conduct of actual physical inventory of each year. The RPCPPE shall be
of the PPE; (b)non-recognition of reconciled with the accounting records, and
depreciation expenses for the the necessary adjusting entries shall be
completed and transferred prepared before the statement date.
infrastructure assets including
recognition of depreciation for new 2. We also recommended that the Municipal The lapsing schedule had not Not
PPE acquisition during the period; Accountant review the records of the been updated. Implemented
(c)discrepancy in the amount of affected accounts, including the additional
depreciation expenses provided in property acquired during the year,
the lapsing schedule and the amount determine the correct date of acquisition of
recorded in the books which is not in the property, and prepare the corresponding
accordance with International Public adjusting entries, if necessary, to take up
Sector Accounting Standards the depreciation for the period in
(IPSAS) 17 and Section 124, accordance with IPSAS 17.
Volume I of the Manual on the New
Government Accounting System for 3. We likewise recommended that the The lapsing schedule Not
LGUs, thus affecting the fair Municipal Accountant update the lapsing remained unreconciled with Implemented
presentation of PPE accounts in the schedule, reconcile the same with the book the amounts presented in the
financial statements. balances, and come up with reliable and financial statements.
accurate PPE balances for a fair
*Reiterated in Part II of this Report presentation of the financial statements.
51
