COA tells Mandaue City to dispose P14-million ‘unserviceable’ properties

By: Rosalie O. Abatayo July 28,2019 - 07:59 PM

CEBU CITY, Philippines — The Commission on Audit has asked the city government of Mandaue to create a Disposal and Appraisal Committee for the disposal of the at least P14 million worth of unserviceable equipment and vehicles.

In its Anual Audit Report for 2018, state auditors said the city should be able to dispose of the unserviceable properties with a total worth of P14,145,347.01, before it further deteriorates and incurs depreciation.

The appraised equipment include printing calculators machine, laser printers, steel mobile filing cabinets, desktop, laptop and notebook computers, cellphones, digital cameras, digital copiers, air conditioners, chairs, decorative fountain, grass cutters, sewing machines, passenger vehicle electric motor type, typewriters, fax machines, hospital beds, trucks, motorcycles, and various vehicles.

“When government property has become unserviceable or is no longer needed, it may be destroyed if found to be valueless or unsaleable or sold at public auction if found to be valuable,” COA said quoting Section 79 of the Auditing Code of the Philippines.

Motorpool inspection

COA auditors noted that the inspection they conducted at the city’s Motorpool in A. Soriano Street, Mandaue Reclamation Area during their audit period disclosed that a bulk of the vehicles in the yard have “either become obsolete or unserviceable.”

In their Inventory and Inspection Reports of Unserviceable Properties (IIRUP)  state auditors said there were deficiencies in the recording of vital item information such as property number, number of years in service and the accumulated depreciation.

Appraisal value of the items could not be determined and [the] mode of disposition was not properly filled up,” state auditors noted.

We recommended that Management create a Disposal and Appraisal Committee, which will undertake the necessary action/s for the immediate disposal of the unserviceable properties to avoid further deterioration and consequent depreciation in its value,” COA said.

State auditors also said that disposing of the unserviceable properties will yield benefits for the city by enabling the storage area to be available for other purposes./dbs

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