The audit found problems with how the agency tracks and records its property and equipment, such as not doing regular physical counts and not reconciling records on time, which could lead to inaccurate financial statements.

Why It Matters

Recommended Actions

• Perform periodic conduct of physical count of PE and timely reconciliation between the accounting records and Reports on Physical Count of Property. Plant and Equipment / Inventory and Inspection Report of Unserviceable Properties (RPCPPE/IRUP), in accordance with the relevant COA Circular
• Collaborate with the stakeholders, such as Local Government Units (LGUs) and water districts to obtain supporting documents such as Deeds of Donation and Acceptance (ODA) or Deeds of Tumover and Acceptance (DOTA) for the proper disposition of PE assets, especially those recorded under Pinatubo Project Management Office (PPMO) and National Government Center (NGC) books that are already occupied and/or used by beneficiaries
• Reclassify PE accounts that are misclassified based on its status and/or disposition of the property in pursuant to provisions of applicable IPSAS
• Coordinate with the concerned Offices and derecognize non-existing PE items in the books of accounts in accordance with COA Circular No. 2020-006
• Reclassify the completed projects totaling P586.692 million from Construction in Progress (CIP) account to its appropriate PE and/or other asset accounts and recognize the related depreciation
• Recognize in the inventory report and financial records the assets that have been physically counted but not recorded, based on available information and documentation in accordance with COA Circular No. 2020-006
• Properly account and conduct the disposal of unserviceable PE items
• Formulate a policy in relation to impairment of PE assets to review its carrying amount and ascertain fair presentation of PE account balances in the books, in accordance with IPSAS 21: and Submut the plans on the idle 12 satellite offices. three multi-purpose centers, other structures/land improvements, and equipment located at the Balik Probinsya, Bagong Pag-asa (BP2) Depot.

Original Audit Finding Excerpt

"For the lapses in the monitoring and recording of PE"

Source Document