Status of
Ref. Audit Observation Audit Recommendation Management Comment/Action
Implementation
non-recognition of depreciation COA Circular No. 2015-008 dated
amounting to ₱4.828 million for November 23, 2015.
depreciable components of LRN; and
(c) the non-disclosure of the total road 4. We also recommended and the Municipal The Municipal Engineer’s Office Not
networks in the Notes to the Financial Accountant agreed to regularly review the still had to provide the Municipal Implemented
Statements, which is not in accordance Local Road Network Ledger Card, request Accountant’s Office with the
with IPSAS 17 and COA Circular No. updated records from the Municipal updated records.
2015-008 dated November 23, 2015, Engineering Office for its infrastructure
thereby affecting the fair presentation projects, and continuously provide
of the account in the financial depreciation for each depreciable
statements. component of the local road network
system.
Reiterated in Part II of this AAR.
5. We further recommended and Management acknowledged that Not
Management agreed to create an Inventory this had been a longstanding Implemented
Committee to conduct an actual physical deficiency of the Municipality. To
count of the local road network system and facilitate the issuance of an Office
report the results thereof in the RPCLRN Order reconstituting the Inventory
to be submitted to the Auditor and Committee, the department heads
Accounting unit not later than January 31 present agreed to draft the
of each year. The RPCLRN shall be proposed composition of the
reconciled with the accounting records, committee for the Municipal
and the necessary adjusting entries shall be Mayor’s approval.
prepared before the statement date.
AAR Unutilized balance of the Local We recommended and Management agreed
2023 Disaster Risk Reduction and to:
Management Fund (LDRRMF) for CY
2023 amounting to ₱6,750,359.21 was 6. Direct the Municipal Treasurer to transfer The Municipal Treasurer had Implemented
not transferred to the Special Trust the unexpended balances of the LDRRM already transferred the unexpended
Fund contrary to Section 21 of Fund for CY 2023 from the General Fund LDRRMF balance amounting to
Republic Act (R.A.) 10121 and Item to the Special Trust Fund. ₱6,750,359.21 to the Special Trust
5.1.10 of COA Circular No. 2012-002, Fund last December 2024.
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