Management Status of
Ref. Audit Observation Audit Recommendation
Comment/Action Implementation
3. Conduct the required preliminary The Inventory Committee Not Implemented
activities prior to inventory taking; and had not taken any action.
4. Record/document the physical count The Inventory Committee Not Implemented
daily in a standard ICF prescribed in still had not conducted an
Annex A of COA Circular No. 2020-006 inventory of the
dated January 31, 2020. Municipality’s properties.
AAR The accuracy and reliability of 5. We recommended that the Municipal The Inventory Committee Not Implemented
2023 the LRN with a reported Accountant record the accumulated still had not conducted an
balance of ₱116,552,189.91 depreciation of the additional road inventory of the
could not be ascertained due to networks, net of the cost of road lots, and Municipality’s properties.
: (a) the non- conduct of an prepare the necessary corrections, and
inventory of local roads and provide the required disclosures in the
the non-preparation of the notes in accordance with IPSAS 17 and
Report on the Physical count COA Circular No. 2015-008 dated
of Local Road Network November 23, 2015.
(RPCLRN); (b) the non-
recognition of depreciation for 6. We also recommended that the Management had not taken Not Implemented
depreciable components of Municipal Accountant regularly review any action.
LRN; and (c) the non- the Local Road Network Ledger Card
disclosure of the total road (LRNLC), request updated records from
networks in the Notes to the the Municipal Engineering Office for its
Financial Statements, which is infrastructure projects, and continuously
not in accordance with provide depreciation for each
International Public Sector depreciable component of the local road
Accounting Standards network system.
(IPSAS) 17 and COA Circular
No. 2015-008 dated
54
