The town's property and equipment records are not reliable. Several problems exist: the physical inventory report was submitted late, the required property records were not kept up to date, items costing less than the official capital threshold were incorrectly recorded as long-term assets, old and unusable vehicles and equipment were not disposed of, the paperwork for a land purchase was incomplete, and the ownership of 11 vehicles was never transferred to the town. Because of these issues, the total reported value of ₱419.5 million cannot be trusted.

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Original Audit Finding Excerpt

"The existence, accuracy and reliability of the reported carrying amount of Property, Plant and Equipment (PPE) accounts totaling ₱419,527,099.64 were not established due to (a) delayed-submission of the Report on the Physical Count of Property, Plant and Equipment (RPCPPE) contrary to Section 124 of the MNGAS for LGUs, Volume I; (b) non-updating of PPE Ledger Cards (PPELCs) and Property Cards (PCs); (c) 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; (d) failure to conduct disposal proceedings on unserviceable properties contrary to Sections 79 and 112 of Presidential Decree (PD) No. 1445, Section 376 of Republic Act (RA) No. 7160 or the Local Government Code (LGC), Manual of Disposal of Government Property and Rules and Regulations on Supply and Property Management in the Local Government; (e) inadequate documentation on the purchased lot amounting to ₱1,650.000.00, contrary to COA Circular No. 2012-001 dated June 14, 2012; and (f) Certificates of Registration (CR) of 11 motor vehicles purchased were not yet transferred under the name of the Municipality of Pulilan contrary to International Public Sector Accounting Standards (IPSAS) No. 17 and Section 39 of PD No. 1445."

Source Document