Some assets on the books could not be found during the physical check, but no one had reported them as missing. This suggests the responsible officials were careless with government property.

Why It Matters

Recommended Actions

• Require the (a) Inventory Committee to (i) conduct an annual physical inventory of PPE and submit the RPCPPE to the AT not later than January 31 of each year
• And (ii) avail of the “One-Time” Cleansing of PPE account balances pursuant to COA Circular No. 2020-006
• (b) GSO to (i) report all obsolete and unserviceable PPE in the IIRUP duly signed by the MA, Inspector/Appraisal Committee and approved by the LCE or authorized representative, and submit the same to the Disposal Committee for proper disposition
• (ii) keep the unserviceable PPE in a secure place or storage room and dispose them within a reasonable time
• And (iii) maintain and update property cards per category of PPE and PAR for issuance to end-users
• And (c) MA to (i) establish the cost of PPE items which are part of a set or recorded in bulk to facilitate proper recognition in the books
• (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
• (iii) derecognize unserviceable properties from the books upon disposal thereof based on the approved IIRUP
• (iv) maintain the PPELCs to reflect the correct balance of each account
• And (v) submit the necessary supporting documents on the parcel of lot procured in CY 2022 for evaluation by the AT
• And (d) MT and GSO Officer to facilitate the immediate registration of vehicles in the name of the Municipality and application of insurance coverage with the GSIS.

Original Audit Finding Excerpt

"There are items in the books that cannot be identified with the existing PPEs but these items were not yet declared as missing. The loss of equipment and other items indicates that the accountable officers were negligent in the safeguarding of assets assigned to them."

Source Document