THE COMMISSION on Audit (CoA) has flagged the failure of the Legazpi City government to reclassify 19 completed construction projects worth P25.9 million into local government unit (LGU) property assets, casting doubt on their actual construction and the audit account of its P231-million construction program.
In calling out the city government, state auditors put a spotlight on the “doubtful accuracy of the year-end balance of the Construction-in Progress (CIP) account amounting to ₱230,959,091.32 due to an inclusion of 19 completed projects amounting to ₱25,869,396.51 which were not reclassified to appropriate Property, Plant, and Equipment (PPE) accounts.”
The Legazpi City government did not immediately respond to an email seeking comment.
The CoA recommended that the LGU direct its accountant to resolve the improperly classified construction projects under its audit account by coordinating with the city’s engineering office.
CoA also flagged P25.8 million worth of property still recorded under the city government’s books despite being transferred to local barangays. This made the PPE accounts of the city “unreliable,” the CoA report said.
In addition, state auditors also flagged the city government’s untitled parcels of land amounting to P83.6 million. The lack of proper documentation and papers exposes the government properties to land disputes, they said. — Kenneth Christiane L. Basilio
