1.5 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 number and location/office, as necessary.
1.6 However, we observed that the unique Property Number for each PPE item was
not adopted and no property stickers were tagged on each PPE, thus accountability
and control for the custody/use of its PPE cannot be clearly established, hence the
existence, completeness and conditions of all PPEs owned by the Agency cannot
be ascertained.
1.7 Section 7 of the Circular further provides that for easy identification, the Property
Number shall be prominently shown in the property sticker, in addition to the
following vital information on the PPE item:
a. Description of the property;
b. Model Number;
c. Serial Number;
d. Acquisition Date/Cost;
e. Person Accountable; and
f. Space for the validation/signature of the Inventory Committee.
c. Non-submission of the approved PIP
1.8 Sections 5.9, 5.10, and 5.11 of the Circular require that, in coordination with the
Property Division/Unit, the Inventory Committee shall plan/strategize on how to
conduct and complete the physical inventory within the prescribed period. It shall
prepare a Physical Inventory Plan (PIP) containing, at the least, the specific
assignments/duties of the Committee members, the cut-off date, and a schedule
specifying the dates and locations of the inventory taking activities from start up
to the targeted completion of the physical inventory. The PIP, which shall be
approved by the Head of the Agency, is required to be submitted to the COA Audit
Team by the Inventory Committee at least ten (10) calendar days before the
scheduled start of inventory activities.
1.9 The Agency, however, was not able 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 dated January 31, 2020, provides for 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.
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