AUDIT OBSERVATIONS AND RECOMMENDATIONS
A. FINANCIAL AUDIT
Property, Plant, and Equipment (PPE)
1. The Municipality of Tayasan did not effectively follow the guidelines and procedures
specified in COA Circular No. 2020-006 dated January 31, 2020, regarding the one-
time cleansing of Property, Plant, and Equipment (PPE), thus affecting the fairness
of presentation of the PPE accounts amounting to ₱571,023,437.67 in the financial
statements at year-end and depriving the government’s access to reliable and useful
information for decision-making and accountability for these assets.
1.1. COA Circular No. 2020-006 dated January 31, 2020, was issued to prescribe
guidelines and procedures for inventory-taking, recognizing existing items at the
station, and addressing the disposition of nonexistent or missing PPE items. This
one-time cleansing of PPE accounts for government agencies aims to establish
verifiable PPE balances as to existence, condition, and accountability.
1.2. As of December 31, 2024, the financial statements showed a PPE balance of
₱571,023,437.67, as follows:
Accumulated
Account Cost Depreciation Net Book Value
Immovable Properties
Land ₱ 13,817,976.04 ₱ 0.00 ₱ 13,817,976.04
Land Improvements 2,071,133.10 0.00 2,071,133.10
Infrastructure Assets 235,766,444.18 2,250,813.02 233,515,631.16
Buildings and Other Structures 99,600,327.69 11,795,771.95 87,804,555.74
Construction in Progress 155,056,264.57 0.00 155,056,264.57
Subtotal – Immovable Properties ₱506,312,145.58 ₱ 14,046,584.97 ₱ 492,265,560.61
Movable Properties
Machinery and Equipment ₱ 92,038,148.47 ₱ 32,738,755.33 ₱ 59,299,393.14
Transportation Equipment 35,605,373.22 21,641,189.44 13,964,183.78
Furniture, Fixtures, and Books 2,504,919.33 711,304.01 1,793,615.32
Other Property, Plant, and
Equipment 8,118,230.93 4,417,546.11 3,700,684.82
Subtotal – Movable Properties ₱138,266,671.95 ₱ 59,508,794.89 ₱ 78,757,877.06
Total PPE ₱644,578,817.53 ₱ 73,555,379.86 ₱ 571,023,437.67
1.3. Our review of the LGU’s compliance with the said circular revealed the following
points that need to be addressed:
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