The city's property records do not match the physical count, with a huge unexplained difference, and some properties that are unserviceable or missing are still on the books, so the reported value of property and equipment is not reliable.

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Original Audit Finding Excerpt

"The accuracy and existence of the reported year-end carrying value of the PPE accounts totaling to ₱710,297,934.37, excluding the Construction-in-Progress (CIP) accounts, were not established due to (a) unreconciled discrepancy on acquisition cost amounting to ₱273,220,587.67 between the Report on the Physical Count of PPE (RPCPPE) for moveable properties and City Accounting Office (CAO) records; non- compliance with the guidelines and procedures in the conduct of physical inventory count contrary to COA Circular No. 2020-006 dated January 31, 2020; (c) overstatement of PPE account due to (i) non-disposal of unserviceable properties recognized in the books with total carrying value of ₱973,524.00; (ii) unlocated equipment with total carrying value of ₱513,844.17."

Source Document