g. The committee, in coordination with the Property Division, must prepare
a Physical Inventory Plan (PIP) outlining member duties, timelines, and
locations for the inventory.
h. The PIP must be approved by the Head of the Agency and submitted to
COA at least ten days before starting.
i. Property records should be updated and reconciled with accounting
records based on the inventory results.
1.3. The Circular also details specific procedures for the cleansing process, including
preliminary activities, the inventory process, and reconciliation of counts with
property and accounting records.
1.4. It was observed that the City did not take advantage of the opportunity to conduct a
one-time cleansing of its PPE accounts, as prescribed in COA Circular No. 2020-006,
dated January 31, 2020. Although the CGSO successfully prepared the RPCPPE of
movable properties as of December 31, 2024, the agency did not adhere to the general
guidelines and specific procedures outlined in the Circular. It simply conducted the
physical count as usual, without incorporating the key guidelines for one-time
cleansing. Moreover, the resulting report was not reconciled with the accounting
records, as it was prepared solely by the CGSO without the participation of a
representative from the Accounting Office.
1.5. The inability to resort to the one-time cleansing of the property accounts resulted in
the unresolved variance of ₱9,530,828.25 between the movable PPE balances in the
RPCPPE and those recorded in the agency’s books of accounts, as shown below:
Per Financial
MOVABLE PPE Per RPCPPE Variance
Statement
MACHINERY AND EQUIPMENT
1 Machinery ₱ 6,049,072.59 7,940,432.59 (₱1,891,360.00)
2 Office Equipment 26,114,258.58 27,620,493.58 (1,506,235.00)
Information and Communication
3 114,710,281.10 110,497,255.10 4,213,026.00
Technology Equipment
4 Agricultural and Forestry Equipment 10,254,646.00 4,767,606.00 5,487,040.00
5 Marine and Fishery Equipment 3,510,358.50 79,206.50 3,431,152.00
6 Communication Equipment 7,855,172.60 7,843,189.85 11,982.75
7 Construction and Heavy Equipment 297,463,673.01 284,676,673.01 12,787,000.00
8 Disaster Response and Rescue Equipment 34,132,813.00 29,101,813.00 5,031,000.00
9 Military, Police and Security Equipment 2,903,429.70 2,937,961.30 (34,531.60)
10 Medical Equipment 19,907,400.55 21,532,869.65 (1,625,469.10)
11 Printing Equipment 1,323,600.00 1,380,600.00 (57,000.00)
12 Sports Equipment 3,125,630.50 3,523,100.50 (397,470.00)
13 Technical and Scientific Equipment 409,540.00 232,460.00 177,080.00
14 Other Machinery and Equipment 14,689,241.79 15,831,368.79 (1,142,127.00)
TRANSPORTATION EQUIPMENT
15 Motor Vehicles 175,298,894.08 184,791,894.08 (9,493,000.00)
16 Watercrafts 4,078,044.63 4,078,044.63 0.00
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