CEBU - The municipality of San Francisco in the island of Camotes allegedly failed to conduct physical inventory of its assets and properties last year, said the Commission on Audit in its report.
Because of this, COA said that the validity, existence and condition of the assets worth P70,763,502.70 cannot reportedly be ascertained.
COA said this is reportedly not the first time that the town did not conduct a physical inventory, a violation of the New Government Accounting System.
“Despite previous recommendations, still no physical inventory was conducted,” the COA report said.
COA said that town’s failure to conduct a complete physical count and maintain sufficient records “denies the agency the opportunity to verify the existence and condition of its fixed assets and to look into the validity of the recorded value in the books of accounts.”
September last year, the municipal mayor issued an order for the municipal treasurer to form an inventory committee however no schedule was reportedly laid down.
It was reportedly only after COA made its audit that the municipal treasurer issued a memorandum for the town’s department heads to submit a list of properties in their respective departments from which the physical inventory would be based.
COA recommended that the municipality should exert extra effort in conducting a physical inventory of its property. – Joy Kareen Saliente/JMO (THE FREEMAN)