“The LGU has a total of _____ kilometers of roads with a
total cost of Php ________. For the year ended, the agency
spent a total of Php ______ for major repairs and Php _____
for the regular maintenance. Reductions in the amount of
Php_______ were recorded due to derecognition, Php
______ for impairment and Php_______ impairment were
reversed.”
2.3.3.2. However, contrary to the above requirement, our review of the
Notes to Financial Statements for CY 2024 found no disclosure of
the total kilometers comprising the Municipality’s Road Network
account. This omission limits the FS users from being adequately
informed of the nature and scope of the Road Network account.
2.4. In the absence of the aforementioned records and reports, we could not ascertain
whether local road networks under the Municipality’s jurisdiction were recorded
completely in the books of account.
2.5. In sum, the foregoing observations rendered the reported Road Networks account
balance doubtful and unreliable, thereby affecting the overall fair presentation of the
Infrastructure Assets account in the financial statements of the Municipality.
2.6. We reiterated our recommendation that the Local Chief Executive create an
Inventory Committee to focus on the physical count of local roads and enjoin
the Municipal Engineer, Municipal Accountant, and Municipal Treasurer to
strictly comply with the accounting and reporting guidelines on the local roads
asset management system pursuant to COA Circular No. 2015-008 dated
November 23, 2015.
2.7. We further recommended and the Municipal Engineer agreed to provide the
Municipal Accountant and the Municipal Treasurer with a complete description
and segregation of road components for road projects.
2.8. We furthermore recommended and the Municipal Accountant agreed to
disclose the total road network system in the Notes to Financial Statements.
2.9. During the exit conference, Management acknowledged that this had been a
longstanding deficiency of the Municipality. To facilitate the issuance of an Office
Order reconstituting the Inventory Committee, the department heads present agreed
to draft the proposed composition of the committee for the Municipal Mayor’s
approval.
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