CEBU, Philippines - The Commission on Audit has reported that Minglanilla town has failed to submit a breakdown or summary of the physical count of its property, plant, and equipment last year thereby the existence and accurate valuation of such cannot be ascertained.
COA said a letter dated January 7, 2010 was sent to the municipal mayor requesting the submission of the report "however no such reports have been submitted."
Based on the COA report said, the property officer of the office of the municipal treasurer said a physical count was conducted however she "failed to prepare and submit the required reports."
"As has been observed and based on previous experiences the reports on the physical count of PEES were not submitted on time but very delayed and beyond the reglementary period giving us difficulty in our verification against the records of the municipal accountant," read the COA report.
COA said had the town prepared and submitted the reports the auditors could have verified the accuracy of the amounts of the total property which has amounted to P97 million as recorded in its books of accounts against its actual existence/condition as reported in the physical inventory reports.
The auditing body recommended that the designated property officer "should follow strictly" Section 124 of the NGAS manual as should prepare a report on the physical count of property every year to be submitted to the auditor concerned not later than January 31 each year.
And that "she should also be required to explain why the inventory reports were not submitted," it added.
A "no report on the physical count of Property, Plant and Equipment (RPCPPE) as of Dec 31, 2009 was submitted by Designated Property Officer of the Office of the Municipal Treasurer contrary to Section 124 of the New Government Accounting System (NGAS) Manual Vol. 1, hence, the existence and accurate valuation of the agency's property, plant and equipment costing P97,251,860.61 as taken up in the books could not be ascertained," read the auditing body's report released this year.
Breakdown of the agency's total property, plant and equipment per fund: General Fund (P92,376,886.62); Special Education Fund (P2,407,333.99) and Trust Fund (P2,467,640), which totals to P97,251,860.61.
Section 124 paragraph 2 of NGAS, Volume 1 states that physical count of property, plant and equipment by type "shall be made annually" and reported on the report of the RCPPE. COA also reminded the town that this shall be submitted to the auditor concerned not later than January 31 of each year, as per NGAS.