Management Status of
Ref. Observation Recommendations
Comments/Actions Implementation
RPT/SET Income accounts
as presented in the financial
statements could not be
relied upon.
2021 AAR, The accuracy and reliability 16. We recommended and Depreciation had been Implemented
AO No. 4, of the reported Property, Management agreed that adjusted based on 5%
page 38 Plant and Equipment (PPE) the Municipal residual value.
accounts could not be relied Accounting Office adjust
upon due to the incorrect the balances related to
basis of recording the PPE account as a
depreciation charges contrary change in accounting
to Philippine Application policy and, subsequently,
Guidance (PAG) 6 of to record depreciation
International Public Sector based on 5% residual
Accounting Standard value in compliance with
(IPSAS) 17 – Property, Plant PAG 6 of IPSAS 17.
and Equipment, resulting in
the overstatement of the PPE Xxx
accounts. Furthermore,
subsidiary ledgers were not
maintained for all PPE
accounts contrary to Section
10 of the NGAS Manual for
LGUs, thus, rendering the
said accounts unreliable.
2021 AAR, Expenses totaling 17. We recommended that The practice of paying Unimplemented
AO No. 6, ₱1,768,545.82 were paid Management instruct the regular and recurring
page 44 through reimbursement Municipal Treasurer and expenses through cash
which included payments for the disbursement officer advance by the disbursing
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