1.9 The LGU, however, was unable to submit the approved PIP despite the audit
team’s written request.
d. Non-conduct of preliminary activities prior to inventory taking
1.10 Item 6.1 of COA Circular No. 2020-006 outlines the preliminary activities
required before conducting inventory taking. However, upon our inquiry with
Management and subsequent verification, the Agency did not perform these
preliminary activities prior to inventory taking due to a lack of manpower.
1.11 We recommended and Management agreed to adhere to the guidelines and
procedures provided in COA Circular No. 2020-006 dated January 31, 2020,
for the one-time cleansing of PPE account balances to ensure reliable PPE
balances that are verifiable as to existence, condition, and accountability as
follows:
a. Create an Inventory Committee;
b. Stricly follow the guidelines and procedures for conducting the physical
count of PPE, recognizing PPE items found at the station, and
addressing the disposition of non-existent/missing PPE items.
Additionally, require the Accountant and Property Officer to reconcile
their records based on the results of the actual physical inventory and
make any necessary adjustments;
c. Adopt a uniform numbering system for property numbers of PPE and
require the Property Unit to update the property stickers in accordance
with the prescribed format, including the required information under
Sections 5.6 and 5.7 of the Circular;
d. Submit the approved PIP to the COA Audit Team within the
prescribed period;
e. Conduct the necessary preliminary activities before taking inventory;
f. Record the physical count daily using the standard ICF prescribed in
Annex A of the COA Circular; and
g. Undertake collaborative procedures to ensure that all PPE in the
RPCPPE are accurately recorded in their respective records and that
the Property Cards (PCs) maintained by the Property Unit and the
PPELCs (PPE Ledger Cards) maintained by the Accounting Unit are
reconciled.
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