1.5. We reiterated our recommendation and the Inventory Committee agreed to:
1.5.1. Strictly follow the guidelines and procedures for conducting the physical
count of PPE. This includes recognizing PPE items found at the station
and disposing of items that are non-existent or missing. The Accountant
and Property Officer should reconcile their records based on the results
of the actual physical count and make any necessary adjustments; and
1.5.2. Adopt a uniform numbering system for PPE property numbers and
require the Property Unit to update the property stickers according to
the prescribed format and include all the necessary information as
specified in Sections 5.6 and 5.7 of COA Circular No. 2020-006 dated
January 31, 2020; and
1.5.3. Prepare the PIP for approval by the Municipal Mayor and submit the
same to COA at least 10 calendar days before the scheduled start of
inventory activities.
Local Road Network (LRN)
2. The accuracy and reliability of the Local Road Network (LRN) account totaling
₱149,095,838.93 could not be ascertained due to various deficiencies noted, contrary
to COA Circular No. 2015-008 dated November 23, 2015, thereby affecting the fair
presentation of the account in the financial statements.
2.1. COA Circular No. 2015-008, dated November 23, 2015, prescribes the accounting
and reporting guidelines for the local roads asset management system, ensuring a fair
presentation of Infrastructure Assets in the financial statements.
2.2. The circular covers the accounting guidelines for local roads and road network
systems, including initial recognition, subsequent measurement, and derecognition,
to ensure that all roads are properly valued and recorded.
2.3. Our review of the financial statements as of December 31, 2024, disclosed that the
Road Networks account with a net book value of ₱149,095,838.93 showed the
following deficiencies, which were inconsistent with the subject circular:
2.3.1. Non-conduct of inventory of local roads and non-preparation of RPCLRN
2.3.1.1. Item V(1) of the Circular requires the conduct of an inventory of
local roads under the LGU’s jurisdiction, while Item VI(3) thereof
requires the Inventory Committee to prepare the Report on the
Physical Count of the Road Network (RPCLRN) to be submitted to
the Auditor concerned and Accounting Division/Unit not later than
January 31 of each year.
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