Physical count not recorded or documented daily in a standard Inventory Count
Form (ICF)
1.3.5. To date, the Inventory Committee has not prepared the ICF for the partial
count conducted in CY 2024 because they could not prioritize the preparation
thereof due to their current workload. Therefore, there is no evidence to
demonstrate that a partial count was conducted, rendering the Committee’s
initial efforts and accomplishments ineffective.
1.4. The LGU’s non-compliance with the provisions outlined in COA Circular No. 2020-
006 dated January 31, 2020, negatively impacts the fairness of the financial
statements’ presentation and may also deprive the government of access to reliable
and useful information in decision-making and accountability for these assets.
1.5. We reiterated our recommendation that the Inventory Committee comply with
the guidelines and procedures in COA Circular No. 2020-006 dated January 31,
2020, for the one-time cleansing of PPE accounts to ensure that the PPE account
balances are verifiable as to existence, condition, and accountability by
observing the following:
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;
1.5.2. Ensure that the Inventory Committee has enough members who are
temporarily relieved of all their regular duties to devote their full time to
the physical inventory process until its completion;
1.5.3. 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
1.5.4. Record and document the physical count daily using the standard ICF
prescribed in Annex A of COA Circular No. 2020-006 dated January 31,
2020.
1.6. In his written reply, the GSO-Designate assured the Audit Team that the Inventory
Committee will submit a partial report after the 2nd Quarter of CY 2025.
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