than January 31 of each year. As of February 14, 2025, none has been
submitted.
2.4.2. Our review of the Report on the Physical Count of Property, Plant and
Equipment (RPCPPE) as of December 31, 2024 showed that the report did
not include the existing local roads and road networks. However,
verification of the Road Networks account balance in the accounting records
as of December 31, 2024 showed that a total of ₱545,659,882.49 was recorded
in the books. Therefore, in the absence of any record in the physical count
conducted, this amount also represents the variance.
2.4.3. Per inquiry, the City Accounting Office (CAO) merely relied on the
documents submitted by the City Engineering Office (CEO), which did not
include the details of the constructed roads and road networks.
Consequently, the RPCLRN was not prepared which should have shown the
Road Network ID No., road name, components which include road lots,
pavements, drainage and slope protection structures and other miscellaneous
structures, the date it was constructed, its cost and its physical condition.
The City General Services Officer (CGSO) also did not render the annual
RLRN as required under Item VI.1 of the same Circular.
2.5. Non-maintenance of the LRNLC and LRNPC showing complete description and
cost segregation of LRN components
2.5.1. Item V of the Circular partly provides that Management shall:
3. Segregate and recognize the cost of each component of the local
roads with identified cost.
4. Determine the components of local roads identified in the inventory
without corresponding cost and recognize the cost of each
component at its fair value.
2.5.2. Item VII enumerates the duties and responsibilities of the Local Accountant
and the CGSO which include, among others, the following:
a. Local Accountant
1. Prepare the Journal Voucher to record the beginning balance of
the LRN and its component in the general ledger and the LRNLC
(Annex D of the circular), respectively; xxx
b. General Services Officer
a. Keep a complete LRNPC for all roads and its components
(Annex E of the circular).
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