Prior Year's Expenses Recorded in Current Year
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: Non-complianceExpenses that belonged to a previous year were reported in the current year, causing the current year's expenses to be overstated and the retained earnings to be misstated.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"155 INTER-AGENCY PAYABLES Understatement of Inter-Agency Payables Accounts - P3,202,785,781.75 1.128 The reported balance of the Inter-Agency Payables accounts is understated by P3,202,785,781.75 due to erroneous recording of (a) liquidations aggregating P3,202,565,781.75 for on -going or not yet completed infrastructure projects; and (b) remittance of the government’s share in the premium contribution totaling P220,000.00 as Due to Pag -IBIG instead of Pag -IBIG Contributions account, contrary to Section 17, Chapter 10, Volume I and Chapter 3, Volume III of the Government Accounting Manual for National Government Agencies. 1.129 The errors in the recording of Inter -Agency Payables accounts are summarized in the following table and discussed in the succeeding paragraphs: Table 27 - Errors on Accounts Inter-Agency Payables Accounts Errors Amount (In PhP) Accounts Affected Understatement (Overstatement) (In PhP) a) Erroneous recording of liquidations for on -"