Status of
Ref. Audit Observation Audit Recommendation Management Comment/Action
Implementation
tax collectibles, contrary to Section 20, the requirement of Section 20 of the
Volume I of the Manual on the New MNGAS.
Government Accounting System for
Local Government Units (MNGAS).
Further, the tax receivables per
accounting records and tax
delinquencies per treasurer’s record
were not reconciled due to the lack of
appropriate records, contrary to
Section 111 (1) of P.D. No. 1445,
hence affecting the fairness of the
balance presented in the financial
statements.
AAR The valuation and accuracy of 45. We recommended that the Management Lack of technically qualified Not
2021 Property, Plant and Equipment (PPE) require the Municipal Accountant to manpower to complete the task. Implemented
with a net book value of verify its records, review and analyze its There were still items for
₱114,210,809.54 could not be relied depreciation schedule, taking into verification.
upon due to: (a) non-recognition of consideration the provisions provided
depreciation expense on PPE under under PAG 4 and PAG 6 of IPSAS 17 to
Trust Fund (TF) which were not arrive at an accurate and reliable carrying
transferred to the General Fund (GF); balance of the PPE, and thereafter prepare
(b) inconsistent application of the five the appropriate adjusting entries.
percent (5%) residual in computing
depreciation expense; (c) inclusion of 46. We further recommended that the Not
semi expendable items under the PPE Accounting Office transfer the completed Implemented
accounts, contrary to International PPE accounts from the TF to the GF Most of the completed projects
Public Sector Accounting Standards pursuant to Sections 97 and 104(i) of the recorded under the Construction in
(IPSAS) 17 and Sections 97 and 104 (i) MNGAS, and maintain the corresponding Progress accounts under the Trust
of the Manual on the New Government Property/Equipment Ledger Cards so that Fund had already been transferred
Accounting System for LGUs, Volume proper monitoring and accurate to the General Fund. However,
I (MNGAS), thereby resulting in the computation of depreciation for each PPE there were still items for
misstatement of depreciation expense can be generated. verification.
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