2.3.1 “The LGU has a total of ____ kilometers of roads with a total cost of
Php_____________. For the year ended, the agency spent a total of
Php_____________ for local road additions, Php_____________ for major
repairs and Php_____________ for regular maintenance. Reductions in the
amount of Php_____________ were recorded due to derecognition,
Php_____________ for impairment and Php_____________ impairment
were reversed.”
2.4 Our review of the Trial Balances of the Municipal Government showed that the
Road Networks (1-07-03-010) account balance as of December 31, 2024, is
₱391,996,864.45. This amount does not appear in the Notes to Financial
Statements and is only included in the total Infrastructure Assets balance of
₱508,020,577.40, with a carrying amount of ₱567,017,894.93. No additional
disclosures were made regarding the composition of Infrastructure Assets, which
may include Road Networks, Flood Control Systems, Water Supply Systems,
Power Supply Systems, Parks, Plazas and Monuments, as well as Other
Infrastructure Assets.
2.5 The absence of disclosures in the Notes to Financial Statements, particularly
regarding the Road Network account has resulted in incomplete financial
information, which departs from the fair presentation attribute required in the cited
provisions of IPSAS and COA Circular No. 2015-008. As a result, the usefulness
of the financial information contained in the financial statements for users, insofar
as road networks are concerned, is also affected. Therefore, users of the financial
statements, particularly the constituents of the municipality, are deprived of
essential and appropriate financial information.
2.6 We recommended and the Municipal Accountant agreed to, henceforth,
include the required disclosures for the Road Network account as required
under COA Circular No. 2015-008.
Unreconciled discrepancies between the physical count and figures in FS of PPE accounts-
₱2,666,049.75
3. The Municipal Government’s inability to properly execute the one-time PPE
cleansing required by COA Circular No. 2020-006, due to delays in submitting the
Physical Inventory Plan, overlapping workloads, incomplete processes, and non-
compliance with the necessary property numbering system, led to unreconciled
discrepancies between the actual count and the figures reported in the year-end
financial statements, including movable properties valued at ₱2,666,049.75,
thereby making the reported ₱1,128,712,417.76 PPE balance in those statements
unreliable.
3.1 COA Circular No. 2020-006 dated January 31, 2020, was issued to prescribe
guidelines and procedures for inventory taking, recognition of items found at the
station, and the disposition of non-existing or missing Property, Plant, and
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