STATUS OF
REFERENCE OBSERVATION RECOMMENDATION IMPLEMENTATION /
RESULTS OF VALIDATION
Circular No.2015-008 dated strictly comply with the accounting and
November 23, 2015, thereby, reporting guidelines on the local roads asset
affecting the fair presentation of the management system pursuant to COA
account in the FS. Circular No. 2015-008 dated October 23,
2015.
2023 AAR The existence, validity, and 6. LCE reorganize the Inventory Committee to Management commented
AO No. 4, correctness of the Inventory include members who can be relieved of their that there is difficulty in
Page 33 accounts totaling ₱7,637,034.53 as regular duties to devote full time to implementing the
of December 31, 2023, have not conducting the physical inventory taking until perpetual inventory
been established due to (a) non- the same is completed; method due to a lack of
conduct of the year-end physical storage space for
7. Inventory Committee prepare and submit a
count, (b) non-compliance with the inventories purchased and
copy of the inventory reports to the Auditor
Perpetual Inventory Method, and (c) insufficient personnel to
to verify compliance with Section 124 of the
non-maintenance of supplies ledger handle and distribute
NGAS Manual for LGUs;
cards and stock cards by the Offices inventories.
of the Municipal Accountant and 8. The Municipal Accountant and Municipal
Municipal Treasurer, respectively, Treasurer maintain the supplies ledger cards
which goes against the provisions set and stock cards, respectively; and
forth in the NGAS Manual for 9. Municipal Accountant strictly follow the
LGUs, Volume 1, thereby, affecting Perpetual Inventory Method for recording
the fairness of the presentation of purchases of supplies and materials as
these accounts in the financial required in the NGAS Manual.
statements.
2023 AAR Disclosures in the Notes to FS on 10. The Municipal Accountant revise the Notes Implemented
AO No. 5, “Loans Payable – Domestic” to the FS to include the principal amount,
Page 37 account balance of ₱64,360,666.62 interest rate, maturity date, purpose of the
million is incomplete, a departure loan, and interest expense of the Loans
from the fair presentation Payable - Domestic account.
requirement under the International
Public Sector Accounting Standards
(IPSAS) thus, affecting the
usefulness of the financial
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