Progress account despite their completion within the year. The detailed list of these
projects is presented in Appendix 1.
1.6. Inquiry with the Municipal Accountant revealed that the CIP–Land Improvements
amounting to ₱4,910,519.87 may pertain to reforestation projects implemented in
CYs 2011 and 2015. She further stated that she is still trying to determine the
current status of the project's implementation.
1.7. Our review of the CY 2024 Report of Checks Issued showed that final payments for
these completed projects were made as early as January 2024. The Disbursement
Vouchers (DVs) supporting the final payments of each project included Certificates
of Completion signed by the Municipal Engineer, along with
Accomplishment/Inspection Reports indicating 100% completion. Despite this,
these projects continued to be recorded under CIP-Infrastructure Assets or CIP-
Buildings and Other Structures in the Municipality’s books as of year-end.
1.8. According to the Municipal Accountant, the transfer of completed projects from the
CIP account to the appropriate PPE accounts is not based solely on final payment
and accompanying documentation. Instead, she waits for another
Accomplishment/Inspection Report from the Municipal Engineer containing a
notation on any additional administrative charges. She explained that in a previous
instance, the costs of completed projects were already transferred to PPE accounts
following final payment, only for the Engineering Office to later submit documents
reflecting additional charges. Since then, she refrained from transferring CIP
balances until receipt of the aforementioned additional documentation.
1.9. As a result of these deficiencies, the CIP-Infrastructure Assets and CIP-Buildings
and Other Structures accounts under the General Fund were overstated by at least
₱23,206,013.91 and ₱19,586,240.86, respectively. Additionally, the CIP-Buildings
and Other Structures account under the Special Education Fund was overstated by
at least ₱16,106,407.59. Consequently, depreciation expenses were understated,
leading to understated Accumulated Depreciation accounts and an overstated
surplus account.
1.10. We recommended that the Municipal Accountant:
1.10.1. Coordinate with the Municipal Engineer in identifying the projects that
have been completed but remained recorded under the CIP accounts;
1.10.2. Record the transfer of the costs of the completed projects from the CIP
accounts to the respective PPE accounts once these are identified;
1.10.3. Record the corresponding depreciation expenses for the current and
prior years; and
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