The municipality recorded property and equipment items that cost less than the ₱50,000 threshold, incorrectly inflating the reported property and equipment balances.

Why It Matters

Recommended Actions

• Require the MA to (ii) effect the adjustment in the books of PPE items with cost below capitalization threshold of ₱50,000.00 that were inappropriately recognized under the PPE accounts;

Original Audit Finding Excerpt

"overstatement of the PPE accounts by net carrying value of ₱612,352.12 due to the recognition of PPE items with cost below capitalization threshold of ₱50,000.00, contrary to Item 4.1 of COA Circular No. 2022-004 dated May 31, 2022"

Source Document