1.7 On November 19, 2024, the PGSO informed that the Inventory Committee was
only constituted on July 31, 2023, and is currently in the process of digitizing
and verifying the data on equipment carried over for several years in the Report
on the Physical Count of Property, Plants, and Equipment. Despite receiving
assistance from an inventory team, the committee has faced challenges due to
the volume of data related to the equipment alone, as well as the number and
location of the 43 offices and hospitals that need to be verified and inventoried.
Additionally, the Committee is under time constraints, preventing them from
focusing on the Provincial Road Network Inventory. The change in
administration and the reshuffling of personnel have also affected several
members of the Provincial Local Road Management Team (LRMT), making it
difficult to convene and gather updated data on the Provincial Road Networks.
1.8 Although the Provincial Engineer has submitted the Provincial Roads Inventory
as of June 30, 2024, the report does not meet the requirements outlined in Annex
C of the Circular. This Annex specifies that, in addition to the Road Network ID
and Road Name, the report must include details such as the components of the
road (e.g., road lot, pavement, drainage, slope, and other miscellaneous
structures), along with the description, construction date, cost, and the condition
of the road. These details are essential for reconciling the records with the
Provincial Accountant’s registries, ensuring that actual assets are accurately
reflected in the books of accounts.
1.9 Moreover, the recording of items for identification in the books of accounts does
not conform with Annex F of the Circular, which provides the guidance on how
to record road networks that are posted in RPCLRN. Further, it outlines the
accounting treatment for roads with no construction cost data and for roads
included in the inventory but not recorded in the registry.
1.10 Therefore, had there been a complete inventory of the local road network
system, along with proper reconciliation of the inventory report and road map
with the registry records and the correct recording in the books, there would
have been no accounts pending identification in the road network accounts. The
lump sum amount lacks specific details, which resulted in the misclassification
of infrastructure assets. This condition also affects management’s compliance
with IPSAS 17, which requires accurate recognition, measurement, and
categorization of assets.
1.11 We recommended and Management agreed that the Governor issue an
executive order to establish the Road Inventory Committee (RIC), clearly
defining the duties and responsibilities of its members. The committee must
thereafter develop a clear action plan with a detailed timeline on the
completion of the road network inventory.
1.12 Further, we recommended and the Provincial Accountant agreed that upon
completion of the inventory, a thorough reconciliation will be conducted
between the results of the physical count, the records in the Registry, and
the books of accounts. Any discrepancies identified during the
reconciliation process be promptly addressed in accordance with the
guidelines set forth in COA Circular No. 2015-008 dated November 23,
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