STATUS OF
IMPLEMENTATION/
REFERENCE OBSERVATION RECOMMENDATION
RESULTS OF
VALIDATION
2021 AAR The validity, correctness, and existence of 25. The Municipal Mayor create an Inventory Unimplemented
AO No. 1, the movable Property, Plant, and Committee to complete the physical count This was restated in the
Page 30 Equipment (PPE) with a net book value of and direct the Accounting and Property audit of CY 2024
₱71,806,913.75 as of December 31, 2021, Units to reconcile the results of the accounts as AO No. 1.
could not be ascertained because physical physical count with the related property
inventory taking was not conducted, nor and accounting records in accordance
was a Report on the Physical Count of with the pertinent provisions of COA
Property, Plant, and Equipment (RPCPPE) Circular No. 2020- 006 dated January 31,
prepared in the absence of the creation of an 2020, to ensure the accuracy of the
Inventory Committee, contrary to Section reported PPE balances in the financial
124 of the Manual on the New Government statements. Any discrepancies noted in the
Accounting System (NGAS), Volume. reconciliation shall be adjusted in
Hence, the balances of the movable PPE accordance with Sections 7.0 and 8.0 of
accounts were unreliable, affecting the fair the Circular as a one-time cleansing of the
presentation of these accounts in the PPE account balances.
financial statements.
2021 AAR The purchase of 20 units of handheld radio 26. Management submit to the Audit Team a Implemented
AO No. 7, amounting to ₱150,000.00 was not valid Permit to Purchase and a Dealer’s (Closed due a change in
Page 49 supported by the Municipality’s permit Permit to Sell from the NTC in order for condition)
from the National Telecommunication the transaction of purchasing handheld
Commission (NTC), while the supporting radios to be considered a valid and
dealer’s permit had already expired at the legitimate expenditure.
date of purchase, contrary to the pertinent
provisions of National
Telecommunications Commission (NTC)
Memorandum Circular No. 09-08-91,
thereby casting doubt on the propriety of
the transaction.
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