verification of the report revealed that discrepancies amounting to
₱1,246,302,307.22, based on acquisition cost, exist between the General Ledger
balances and those balances reported in the actual count. Included in this amount
were movable properties totaling ₱2,666,049.75. As a result, the balances reported
in the financial statements as of December 31, 2024, remain unadjusted.
3.8 Further examination also showed that the differences between the reported
balances are due to properties that are either already unserviceable or can no longer
be located. The gaps between the actual count and those recorded in the books still
require further verification to make the necessary adjustments. Furthermore, the
authority to derecognize those PPE items that can no longer be located or are
missing has still not been requested from this office, as required in Section 8.3 of
COA Circular 2020-006.
3.9 Management, however, expects to complete all the necessary one-time cleansing
procedures as soon as the discrepancies are verified and approved for adjustments
in the accounting records. Management also added that the renewal of the Property
Acknowledgement Receipts and the preparation of the Inventory and Inspection
Report for all its properties are ongoing.
3.10 With regard to the numbering system for the properties of government agencies,
Section 5.6 of the aforementioned Circular requires that a unique Property Number
be assigned to each PPE item, using the following numbering system:
3.11 The codes for the PPE sub-major account group and General Ledger account
correspond to those provided in the Revised Chart of Accounts prescribed under
the Accounting Manuals of the respective Sectors (National, Local, and
Corporate). Additional digits may be used for serial numbers and location/office,
as necessary.
3.12 Moreover, Section 7.0 thereof provides that for easy identification, the Property
Number shall be prominently displayed in the property sticker, along with the
following vital information on the PPE item: (a) description of the property, (b)
mode number, (c) serial number, (d) acquisition date/cost, (e) person accountable,
and (f) space for the validation/signature of the Inventory Committee.
3.13 Random inspections of properties owned by the Municipal Government revealed,
however, that although the properties already had property stickers, the
abovementioned numbering system was not adopted. The Property Number was
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