STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT
RECOMMENDATIONS
Of the 123 prior years' audit recommendations, 4 were merged due to similarity of issues raised
and 1 was issued with a Notice of Disallowance. Of the remaining 118 audit recommendations,
12 were implemented and 106 were unimplemented, as shown in the results of validations
presented below:
Status of
Ref Observation Recommendations Implementation/
Results of Validation
2023 The accuracy and reliability of the 1) Management direct the CAO, Unimplemented
AAR, balance of the LRN account CEO, CGSO to strictly comply There was no report
AO totaling ₱501,184,462.21 could with the accounting and reporting submitted by the
No.1, not be ascertained due to the: (a) guidelines on local roads asset concerned offices to
page the non-conduct of inventory of management system, and to COA.
34 local roads and non-preparation of earnestly perform their respective
a separate RPCLRN; (b) non- duties and responsibilities set This is reiterated in
maintenance of the LRNLC and forth under COA Circular No. the audit of CY 2024
LRNPC showing complete 2015-008 dated November 23, accounts as Audit
description and cost segregation of 2015. Observation (AO)
LRN components; (c) non- No. 2.
provision of depreciation for LRN
items; and (d) lack of full 2) Henceforth, the Inventory Unimplemented
disclosure of the total road Committee conduct the annual No action taken by
networks in the Notes to the physical count of all its LRN in management.
Financial Statements, contrary to accordance with regulations,
COA Circular No. 2015-008, making sure to produce the This is reiterated in
thereby, affecting the fair details necessary to be reported the audit of CY 2024
presentation of the account in the separately in the RPCLRN for accounts as AO No.
financial statements. submission to the Auditor and 2.
Accounting Office not later than
January 31 of each year. The
RPCLRN shall be reconciled with
the accounting records and the
necessary adjusting entries be
prepared before the statement
date.
2023 Various inventory accounts 3) The CGSO prepare weekly the Unimplemented
AAR, totaling ₱129,302,109.35 were not SSMI duly supported with the
AO adjusted to recognize the stocks RIS and other records and submit The CGSO failed to
No.2, issued or utilized during the year it to the Accounting Office as the submit to the
page since the SSMI were not prepared, basis for recognizing the Accounting Office on
38 contrary to pertinent provisions of corresponding expense in the a weekly basis the
the NGAS Manual for LGUs, books. SSMI and its
Volume I, thus, presenting an supporting
unreliable balance of inventories documents.
in the financial statements.
This is reiterated in
the audit of CY 2024
accounts as AO No.
3.
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