KAWIT, Cavite — The Commission on Audit (COA) has called out the municipality of Kawit, under the leadership of Mayor Angelo Aguinaldo, for failing to resolve a P59.56 million discrepancy in its Property, Plant, and Equipment (PPE) account balances as of year-end 2023.

In its audit report released December 2024, COA said the discrepancy arose from inconsistencies between the balances recorded in accounting and property records. The presence of lump-sum amounts totaling P78.39 million further undermined the accuracy and accountability of the municipality’s financial statements.

The report revealed that Kawit had yet to fully comply with the guidelines set in COA Circular No. 2020-006, which prescribes procedures for the one-time cleansing of PPE account balances. These include inventory reconciliation, derecognition of missing items, and proper accounting disclosures.

COA noted that while the municipality prepared a Physical Inventory Plan in compliance with the circular, it only partially completed the inventory-taking process.

The reported PPE balance of P588.77 million per the inventory records did not match the P648.33 million reflected in the financial statements, resulting in the unresolved P59.56 million net difference.

The audit also revealed that some records were irretrievable due to fire and flooding incidents involving municipal documents, further complicating the reconciliation process. Major discrepancies included P52.07 million in land improvements and P4.14 million in machinery and equipment.

COA ordered that the municipal accountant and General Services Office (GSO) update and reconcile inventory records with property ledger cards and accounting records. The agency also urged officials to revisit procedural guidelines under COA Circular No. 2020-006 to address unresolved discrepancies.

“The inability to complete the guidelines and procedures… will repetitively cause exceptions in the presentation of the accounting and property records,” the report warned.

The P59.56 million discrepancy, coupled with unresolved lump-sum amounts, continues to raise doubts over the municipality’s ability to ensure accountability and transparency in its financial management.