2. Six completed projects under the Trust Fund (TF) totaling ₱9,782,580.09 were not
transferred to the General Fund (GF) due to insufficient monitoring, contrary to Section
104(1.i) of the NGAS Manual, Volume I and IPSAS No. 17, thus, overstating the
Construction in Progress account in the TF while understating the related PPE accounts
in the GF by the same amount, as well as understating depreciation expense by an
estimated amount totaling ₱7,794,223.89, which affected the fair presentation of these
accounts in the financial statements.
We recommended that the Municipal Accountant prepare the following entries in the
Trust Fund and General Fund books as follows:
A. Trust Fund Books:
a. To record the transfer of the cost of the six completed projects from CIP accounts
to the respective PPE accounts:
Account Name Account Debit Credit
Code
Road Networks 1-07-03-010 6,699,125.51
Water Supply System 1-07-03-040 1,988,213.14
Buildings 1-07-04-010 1,095,241.44
CIP – Infrastructure Assets 1-07-10-020 8,687,338.65
CIP – Buildings and Other
1-07-10-030 1,095,241.44
Structures
b. To record the transfer of the PPE accounts to the GF:
Account Name Account Debit Credit
Code
Government Equity 3-01-01-010 9,782,580.09
Road Networks 1-07-03-010 6,699,125.51
Water Supply System 1-07-03-040 1,988,213.14
Buildings 1-07-04-010 1,095,241.44
B. General Fund Books:
a. To record the receipt of the six completed projects from TF:
Account Name Account Debit Credit
Code
Road Networks 1-07-03-010 6,699,125.51
Water Supply System 1-07-03-040 1,988,213.14
Buildings 1-07-04-010 1,095,241.44
Government Equity 3-01-01-010 9,782,580.09
iv
