The city received donated vehicles, including an ambulance and buses, but did not record them in its accounting books because it lacked documents showing their value or donation papers. This means the city's reported assets are understated, making its financial statements inaccurate.

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Original Audit Finding Excerpt

"56 copy of the report. Consequently, the CA was unable to provide the required disclosures regarding Road Networks in the NFS due to the lack of pertinent details. 6.7 Moreover, the City had not yet prepared and maintained the following reports as at year-end (Annexes to COA Circular No. 2015-008): a. Report on LRN – prepared yearly and presented by road and its component; b. LRN Ledger Card and subsidiary records for roads and road components for every road network; c. LRN Property Card; and d. Report on the Physical Count of LRN which shows the Road Network ID number, road name, components and description, date of construction, costs and condition. 6.8 Without the proper identification, inventory and reconciliation of the local road networks, the absence of description and cost segregation of the road components of each local road may result in inaccurate financial data. This may cast doubt on the existence and completeness of the Road Networks account. 6."

Source Document