The city cannot prove that the reported value of its roads is correct because it did not keep the required detailed records, inventory lists, and property cards. Also, the financial statements do not give enough information about road networks.

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Original Audit Finding Excerpt

"The lack of proper identification, inventory, and reconciliation of LRNs, along with the absence of descriptions and cost segregation of road components may result in inaccurate financial data. Thus, the accuracy and completeness of the reported carrying value of the Road Networks account amounting to ₱68,116,687.49 could not be ascertained."

Source Document