Properties meant for sale, donation, or distribution, or not used for administration, were incorrectly recorded under property and equipment instead of inventory or investment property.

Why It Matters

Recommended Actions

• Reclassify Land assembly for future projects ... to Investment Property of P1.109 billion and Merchandise Inventory accounts of P241.121 million, in compliance with the audit recommendation in prior years

Original Audit Finding Excerpt

"Fast track the enhancement of the BCS on the generation of Aging and other reports that will require reliable financial information/report to attain fair presentation of the accounts in the FS. The existence, accuracy, and completeness of the balance of the Property and equipment (PE) account with carrying amount of P3.692 billion as at December 31, 2022 cannot be ascertained due to several deficiencies noted in the reporting, recording and monitoring of the status of properties as well as establishing property accountability, contrary to the provisions of IPSAS 1, 3, 12 and 17 and International Organization of Supreme Audit Institutions for Guidelines on Internal Control Standards for the Public Sector (INTOSAI GOV 9100), thus, affecting the fairness of presentation of the PE account in the FS. Paragraph 27 of IPSAS 1 on the Presentation of Financial Statements states that: Financial statements shall present fairly the financial position, financial performance and cash flows of an"

Source Document