Law Summary

Purpose and Background

• This Memorandum Circular aims to address common audit findings related to property accountability within the Land Transportation Office (LTO) in the Philippines.
• It highlights deficiencies identified during audits conducted by the Central Office Internal Auditors concerning the handling of accountable items such as Certificate of Registration (CR), plates (new and storage), and stickers.

Common Audit Findings

• Numerous unaccounted for items were noted, arising from several deficiencies:
  • Non-updating of plates in the LTO-IT System, particularly those that are manually issued but not marked as released.
  • Non-sequential issuance of plates.
  • Non-tagging of stickers that have been issued.
  • Lack of recording for reactivation of storage plates, including absence of a logbook.
  • Failure to print necessary monitoring reports on a regular basis.

Internal Control Weaknesses

• The identified deficiencies indicate significant weaknesses in internal control and monitoring procedures.
• These weaknesses may result in complications such as the non-issuance of central office clearance to accountable employees upon their retirement.

Compliance Directives

• All concerned employees are mandated to adhere to the following requirements:
  • Assign plate numbers exclusively from the MVRS plate table (no pre-assignment allowed).
  • Immediately update pre-assigned temporary plates to regular plates using the plate maintenance facility.
  • Ensure all released stickers are appropriately tagged in the system.
  • Accurately document reactivation details of storage plates in the logbook for verification purposes.
  • Print Plates and Sticker Monitoring Reports (weekly or monthly) and the Report of CR Issued (daily) as a mandatory practice.

Penalties for Non-compliance

• Employees found in violation of this Memorandum Circular will face administrative charges.

Key Takeaways

• This Memorandum Circular emphasizes the importance of strict adherence to property accountability protocols within the LTO to mitigate audit findings and ensure proper management of accountable items.
• Essential actions include timely updates in the system, accurate record-keeping, and mandatory reporting practices.
• Non-compliance can lead to administrative repercussions, underscoring the necessity for diligence in following the outlined procedures.