Overstatement of Property, Plant and Equipment (PPE)
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: MisstatementThe property and equipment balance was vastly overstated due to many recording errors. Assets that should have been recorded, removed, reclassified, or turned over to other agencies were not handled correctly, and some repairs were not capitalized.
Why It Matters
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Original Audit Finding Excerpt
"Annex A 1 of 3 Summary of Misstatements Period Covered January 1 to December 31, 2023 Office/ Region Audit Observation/ Description of Misstatement Misstatements (Net) Adjusted by Management? Amount (In PhP) Accounts Affected Effect (Overstatement)/ Understatement (In PhP) (A) (B) (C) (D) Yes No NCR, V, IX a) Net understatement of Cash and Cash equivalent due to: • Unrecorded manager’s check issued by Land Bank of the Philippines; • Erroneous entries and non-replenishment of Petty Cash Fund; and • Unreleased/stale checks not reverted to cash account. 2,393,945.14 Cash in Bank - Local Currency Current Account (LCCA) Petty Cash Fund Infrastructure Assets Due to Officers and Employees Accounts Payable Guaranty/Security Payable Accumulated Surplus/(Deficit) 2,572,718.04 (178,772.90) 722,758.85 (78,521.98) 3,282,785.60 12,691.29 (100,250.92) ✓ VIII, X b) Net Overstatement of Receivables – Disallowa"