1.3. Our review of the LGU’s compliance with the said circular revealed the following
points that need to be addressed:
Incomplete physical count of PPE
1.3.1. Our verification of the Municipality’s Agency Action Plan and Status of
Implementation (AAPSI) of audit recommendations as of December 31,
2024, showed that the Inventory Committee has not yet completed the
inventory of the PPE owned by the Municipality.
1.3.2. We interviewed the Assistant Municipal Accountant, who is also a member
of the Inventory Committee, regarding the completion of their physical count
for CY 2024, and the following points were noted:
1.3.2.1.The Inventory Committee has conducted the preliminary activities for
the count and prepared the Physical Inventory Plan (PIP);
1.3.2.2.The physical count began in December 2024 and could not be
completed at year-end due to insufficient manpower and the fact that
the Inventory Committee members were not temporarily relieved
from their regular duties; and
1.3.2.3.No report was prepared to document the partial count conducted
because the members of the Inventory Committee who were not
relieved from their regular duties could not prioritize the preparation
thereof due to their current workload.
1.3.3. While the Audit Team appreciates the LGU’s efforts in conducting
preliminary activities for the physical count of property in CY 2024, the
inability to verify the existence of PPE and the accuracy of book balances
totaling ₱375,535,879.35 as of December 31, 2024, raises significant
concerns about the fair presentation of these accounts in the FS.
Non-adoption of unique property numbers for PPE and absence of property stickers
1.3.4. On February 26, 2025, the Audit Team conducted an ocular inspection of the
agency’s PPE. However, we observed that property stickers with a unique
Property Number for PPE had not yet been attached to each PPE item because
the Municipality was not able to have the stickers printed before conducting
the inventory count. As a result, accountability and control over the custody
and use of PPE could not be established. Furthermore, the existence and
condition of all PPE owned by the agency could not be ascertained.
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