Unrecouped Advances to Contractors
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceDPWH paid contractors in advance for work, but has not deducted or recovered all of these advances, even for projects that are finished or terminated.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"324 Observations and Recommendations Reference Management Action Auditor’s Results of Validation 64. We recommended and Management of DPWH Offices concerned agreed to direct the Accountants to immediately remit all interest income earned and unutilized collections from sale of bid documents and other income from procurement activities to the BTr pursuant to Department of Finance (DOF) Circular No. 01 -2015, as amended. Interest income from bank deposits and the collections from sale of bidding documents were remitted to the BTr and recorded per JEV Nos. 2023-02-000046 and 2023-04-000397 totaling P6,352,923.55. Implemented JEVs made for the remittance of interests and other collections were verified and found in order. Non-liquidation of funds transferred to implementing agencies/offices We reiterated our previous year’s recommendations that Management of DPWH offices concerned: 65. Conduct periodic monitoring, analysis and r econciliation of"