APMT — Page 8 of 90

                                                     AGENCY ACTION PLAN and STATUS of IMPLEMENTATION                                                                                  RESULTS of COA VALIDATION
                                                             Agency Action Plan (for Partially Implemented
                                                               and Not Implemented Recommendations)                             Reason for                                                   Actual
                                                                                                                Status of     Partial/Delay/       Action      Date      Status of
                                            Audit              Action Plan/                        Target                                                                                Implementation
 Ref.     Audit Observations                                                         Person/                   Implemen-           Non-        Taken/Action   Follow    Implemen-                                 Remarks
                                      Recommendations            Remarks           Department   Implementati                 Implementation,                                                  Date
                                                                                   Responsible                   tation                         to be Taken     Up        tation
                                                                                                  on Date                      if applicable
                                                                                                From     To                                                                              From       To
          Expense accounts by           the transfer of
          an       undetermined         expendable
          amount,       pending         property,        in
          submission of the             accordance with
          Inventory     Transfer        IPSAS 12, COA
          Report (ITR).                 Circular No. 2015-
                                        009          dated
                                        December 1, 2015,
                                        and COA Circular
                                        No.       2022-004
                                        dated May 31,
                                        2022.

 2024     Borrowing        costs    10. Prepare         the    As recommended and        PAccO   June   June       Fully                        Prepared      7/16/25       Fully       6/30/25   6/30/25
 AAR,     amounting to ₱                necessary              as adherence to the                             Implemented                      necessary               Implemented
AO No.    5,035,754.82     were         adjustments in the     requirement of IPSAS                                                              adjusting
6, page   expensed      outright,       books to capitalize    5, adjustment was                                                                  entries
   52     which is inconsistent         the     borrowing      made       capitalizing
          with paragraph 18 of          costs incurred in      borrowing costs for CY
          IPSAS 5 that requires         the construction of    2024 per JEV100(01)-
          the capitalization of         the      qualifying    20250600820
          borrowing costs for           assets            in
          qualifying     assets,        adherence to the       10710030 (Dr)
          thereby overstating           requirement       of   5,035,754.82
          expenses           and        IPSAS 5.               30101020-03 (Cr)
          understating     asset                               5,035,754.82
          accounts.
                                                               With accompanying
                                                               transfer entries for
                                                               General Fund-Proper
                                                               and General Fund -
                                                               Loans, inclusive of
                                                               Interest Expenses for
                                                               Jan-June 2025 in the
                                                               amount             of
                                                               ₱27,200,236.67;
                                                               JEV100(01)-
                                                               20250600859

                                                               30101010
                                                               32,235,991.49