The municipality's reported property and equipment values are unreliable because records between offices do not match, some infrastructure costs were classified incorrectly, and there is no proper proof of ownership for land.

Why It Matters

Recommended Actions

• Update PLCs and PCs to include complete acquisition details. Recover missing records where possible. Integrate the PPE custodianship and recording systems across MAO, GSO, MTO, and MEO to ensure unified, real-time asset tracking. Institutionalize periodic reconciliation between accounting and property records to avoid recurrence. instruct both the MA and the GSO to: (a) Conduct a full inventory covering all PPE classes, including land, infrastructure, and buildings, in coordination with MTO and MEO. instruct the MA to: (a) Ensure all infrastructure costs are initially recognized under CIP accounts and transferred to PPE only upon project completion and acceptance. (b) Strengthen coordination with the MEO to secure timely and accurate status reports, including percentage of completion and actual cost incurred. Train relevant personnel on proper documentation, record maintenance, proper project cost recognition, reporting and compliance with MNGAS requirements and government accounting standards, create a titling committee responsible for gathering all

Original Audit Finding Excerpt

"MUNICIPALITY OF PULILAN BULACAN AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION Audit Observations and Recommendations AUDIT OBSERVATIONS AUDIT RECOMMENDATIONS Unreliable Property, Plant and Equipment Account 1. The accuracy, valuation, existence, and completeness of the reported carrying value of the Property, Plant and Equipment (PPE) accounts totaling ®771,022,338.82 as of December 31, 2024 were not established due to (a) unreconciled PPE records between MAO and GSO in the amount of (b) Update PLCs and PCs to include complete acquisition details. 'P1,172,258,629.88 due to incomplete Recover missing records where possible. documentation and fragmented asset custodianship; |(c) Integrate the PPE custodianship and recording systems across (b)misclassification and understatement of MAO, GSO, MTO, and MEO to ensure unified, real-time asset Infrastructure project costs by ®18,860,822.39; and |tracking. (c) lack of supporting proof of ownership and (d) Institutionalize periodic recon"

Source Document