Overstatement of Inventories
Department of Public Works and Highways · 2023
This summary was generated automatically from the source document and may contain errors. It is not an official interpretation and should not be relied upon as legal guidance. Review the original excerpt and source document to verify before citing or acting on it.
What Happened?
Category: Financial ManagementIssue: MisstatementThe inventory balance was too high because received items were not recorded, issued items were not removed from inventory, and some supplies and materials were incorrectly expensed immediately instead of being recorded as inventory.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"c) Net Overstatement of Inventories due to: • Unrecorded receipts of inventories from the Department of Budget and Management - Procurement Service and DPWH Regional Office; • Unrecorded issuance of materials inventory and semi-expendable properties; and • Erroneous recording of supplies and materials as outright expenses. 1,472,554.93"