MANILA—The Commission on Audit has said there was unauthorized dropping of property, plant and equipment (PPEs) owned by the Davao City local government from its books of accounts, raising doubts on the existence of properties and accuracy of the city’s financial statements.

In the 2021 audit report on the local government, state auditors said that among the accounts removed were information and communication technology equipment amounting to P28.562 million, motor vehicles worth P7.912 million, and furniture and fixtures totaling P4.067 million.

The auditors emphasized that non-existing or missing PPEs without available record of accountability can only be derecognized from the books of accounts only upon the grant of specific authority by the COA.

“The eagerness in coming up with the adjusted PPE account balances caused the management to omit the conduct of the necessary procedures in getting the account balances that are verifiable as to the existence, condition and accountability of the PPE,” the auditors said.

The city general services office told the audit team that items were neither found nor presented during the actual physical count made in the first half of 2021.

Some of the PPEs such as computer cablings and software were also already obsolete.

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The audit team noted that there was no proper custodianship and stewardship as the accountable officers can no longer be contacted.

The audit team recommended that the city officials remind their accountable officers to provide the supporting documents as basis for dropping the items from the books as well as make necessary adjustments to correct the entries made for dropped PPE items that were not authorized,” the audit team said.

The city accounting office admitted that it had overlooked the required documents necessary for dropping of the items and reversions were already made to correct the entries made.

“Moreover, the city accounting office will wait for the submission of the documents from the city general services office before making any adjustments to the PPE accounts,” the audit team noted.

Various vehicles received by the city government as donations were also not yet recognized in the books of accounts, contrary to the International Public Sector Accounting Standards.

Among the donations cited in the report were a 17-seater JAC van donated by the Embassy of the People’s Republic of China and a land ambulance with medical supplies from Pitmaster Foundation Incorporated.

The city accountant told the audit team that the donated vehicles were not yet recorded because the documents were allegedly not forward to the city accounting office.

“It is worth stressing the coordination between departments in the city plays and important role in achieving deliverables of every department for the realization of the local government’s goals,” the audit team said.

The report can be downloaded from the COA website.

A copy of the report was also sent to the office of former city mayor Sara Duterte-Carpio.

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