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. On April 10, 2025, we issued an Audit Query to Management on
their compliance with the required physical count. In response, 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 a phone inquiry, the Acting Municipal Treasurer
mentioned that no Office Order was issued to reconstitute the
Inventory Committee, which would focus on and carry out the
physical count of all PPEs. He added that although the Municipality
previously had an Inventory Committee, the Office Order creating
it could no longer be located, and its members comprising the
committee could not be recalled.
1.3.1.4. The inability to verify the existence of PPE and the accuracy of book
balances totaling ₱401,189,329.31 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.
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