Understatement of Inter-Agency Payables due to Erroneous Recording of Liquidations for Ongoing Projects
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency reduced the amount it owes to other government agencies for infrastructure projects that are not yet finished. This made the payables balance lower than it should be, making the financial statements inaccurate.
Why It Matters
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Original Audit Finding Excerpt
"Review and verification of SLs and liquidation reports (LRs) disclosed that disbursements/liquidations aggregating P 3,202,565,781.75 submitted by the ROs/DEOs in CY 2023 were recorded in the books as deductions to its liabilities/payables by debiting the Due to NGAs account , although the implementation of the corresponding infrastructure projects is still ongoing and not yet completed."