The city cannot find expensive pieces of equipment worth over half a million pesos. The paperwork showing who was responsible for them is missing or outdated, and the investigation into what happened has not been completed.

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Original Audit Finding Excerpt

"49 Particulars Amount Total unserviceable properties per RPCPPE (table under paragraph 3.4) (unserviceable PPE ₱16,729,124.00), and SEP (₱446,320.00) ₱17,175,444.00 Total unserviceable properties per Auction Notice 16,587,791.30 Variance ₱587,652.70 3.19 The variance may be attributed to the incomplete CGSO records and exclusion of certain unserviceable properties from the list of items for auction. This was also due to the inconsistencies noted in the RPCPPE as discussed in the previous paragraphs. 3.20 The non-derecognition of these unserviceable properties from the books resulted in the overstatement of the reported balance of the PPE accounts. This is inconsistent with IPSAS No. 17 which requires the derecognition of PPE items when no future economic benefits or service potential is expected from its use or disposal. Also, the non-disclosure thereof in the financial statements misled readers on the actual condition of the City’s PPE. c. Unlocated equipment"

Source Document