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. Stricly follow the guidelines and procedures in the conduct of physical
count of PPE, recognition of PPE items found at the station, and
disposition for non-existing/missing PPE items, and require the
Accountant and Property Officer to reconcile their records based on the
results of the actual physical inventory and effect necessary adjustments;
b. Adopt the uniform numbering system for property numbers of PPE and
require the Property Unit to update the property stickers based on the
prescribed format and to include the required information under Sections
5.6 and 5.7 of COA Circular No. 2020-006 dated January 31, 2020;
c. Submit the approved PIP to the COA Audit Team within the prescribed
period;
d. Conduct the required preliminary activities prior to inventory taking;
e. Record the physical count daily in a standard ICF prescribed in Annex A
of COA Circular No. 2020-006 dated January 31, 2020; and
f. Undertake collaborative procedures to ensure that all PPEs in the
RPCPPE are duly 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.
1.12 The Municipal Treasurer further stated that the full implementation of the PPE
cleansing is targeted for completion by December 2025. A draft Inventory Plan
has already been prepared and is currently under review by the Inventory
Committee, pending final approval by the Local Chief Executive (LCE). With this
initiative, the agency is expected to capitalize on the opportunity to fully comply
with the provisions of the circular mandating a one-time PPE cleansing.
RPT and SET Receivables not properly set-up and maintained - ₱34,098,709.48
2. The Real Property Tax (RPT) and Special Education Tax (SET) Receivables were
not properly set-up and maintained, contrary to Sections 19(b), 20 and 84, and 36 of
the New Government Accounting System (NGAS) Manual for Local Government
Units (LGUs), Volume I, thus, showing nil balances instead of ₱34,098,709.48,
thereby understating the RPT and SET Receivables by the same amount.
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