The inventory account for completed housing units available for sale is overstated by over 195 million pesos because of poor project management and a lack of coordination between departments.

Why It Matters

Recommended Actions

• Require NGC personnel to conduct periodic inspection and physical inventory of the properties to ensure the correctness of the records.

Original Audit Finding Excerpt

"~~ Agency Action Plan Reason for Partial/Detay/ Ref. Audit Observations Audit Recommendations Target Implementation Date Status of Non- Action Taken/Action to be Taken Action Plan Person/Dept. Implementation | !mplementation Responsible From To , if applicable h. Formulate a policy in relation to impairment of PE assets to reflect the carrying value of the assets and ensure the fair presentation of PE account balances in the books, in accordance with IPSAS 21; We further recommended that Management: Not Implemented i. Include PE inventory reconciliation as a Key Performance Indicator in the performance appraisal of accountable officials; Implemented j. Assign all PE items with j. GSD: Tagging of property/equipment is done prior responsibility area for to the issuance of the item to the accountable officer. accountability and their property Itis also carried out during inventory taking. Sample number for —_ reconciliation of inventory tags are attached for your reference purposes; (An"

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