4.11.2. GF Books:
a. To record the receipt of 14 completed projects from TF
Account Name Account Code Debit Credit
Road Networks 1-07-03-010 41,068,941.46
Flood Control System 1-07-03-020 28,975,463.07
Buildings 1-07-04-010 15,079,301.21
School Buildings 1-07-04-020 998,245.80
Hospitals and Health 1-07-04-030
1,270,829.57
Centers
Government Equity 3-01-01-010 87,392,781.11
b. To record the corresponding depreciation expenses for the current
and prior years
Account Name Account Code Debit Credit
Prior Period Adjustment 3-01-01-020 29,358,125.96
Accumulated
Depreciation -
Road Networks 1-07-03-011 20,797,770.92
Flood Control 1-07-03-021
4,044,670.62
System
Buildings 1-07-04-011 3,470,238.32
School Buildings 1-07-04-021 144,745.64
Hospitals and 1-07-04-031
900,700.46
Health Centers
4.12. We further recommended and the City Accountant and the City Engineer
agreed to regularly monitor the City’s CIP accounts to ensure the timely
transfer of completed projects to the appropriate PPE accounts.
4.13. Lastly, we recommended and the City Accountant agreed to assign a personnel
in charge to prepare individual subsidiary ledgers for each project to ensure
proper recording and monitoring.
Long outstanding Accounts Payable - ₱32,174,051.07
5. The presence of accounts totaling ₱32,174,051.07 that have remained outstanding for
more than two years and which may no longer represent valid claims but were not
reverted to the unappropriated surplus, contrary to Section 98 of P.D. No. 1445, casts
doubt on the reliability and validity of the Accounts Payable balance of
₱141,031,284.69 in the Financial Statements and precludes any beneficial use of said
funds. Moreover, payables totaling ₱798,241.42 were merely estimated obligations
which overstated both the liability and related expense accounts and understated the
City’s actual results of operations.
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