1.3.1. Non-conduct of the physical count of PPE
1.3.1.1. Section 5.1 of the Circular provides that each government agency shall
conduct a physical count of all its PPE, whether acquired through
purchase or donation, including those constructed by the
administration and found at the station.
1.3.1.2. On July 2, 2024, the Municipal Mayor issued Executive Order No. 16,
series of 2024, creating the Inventory Committee, which would carry
out the physical count of the Municipality’s inventories.
1.3.1.3. However, in a phone inquiry, the Municipal Treasurer, who is a
member of the Inventory Committee, disclosed that the Inventory
Committee had not yet performed the physical count of the
Municipality’s inventories, as they are still awaiting the necessary
training.
1.3.1.4. The Supply Officer, another member of the Inventory Committee,
confirmed the committee’s inability to conduct the physical count.
1.3.1.5. The inability to verify the existence of PPE and the accuracy of book
balances totaling ₱571,023,437.67 as of December 31, 2024, raises
significant concerns about the fair presentation of these accounts in
the financial statements.
1.3.2. Non-adoption of unique property numbers for PPE and absence of property
stickers
1.3.2.1. Section 5.6 of the Circular provides that each government agency shall
adopt a uniform property identification system for PPE wherein a
unique Property Number shall be assigned for each PPE item, using
the following numbering system:
1.3.2.2. The codes for the PPE sub-major account group and General Ledger
account correspond to those provided in the Revised Chart of
Accounts prescribed under the Accounting Manuals of the respective
Sectors (National, Local, and Corporate). Additional digits may be
used for serial number and location/office, as necessary.
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