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:
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, the
Acting Municipal Treasurer also confirmed that 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-reconstitution 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.
42
