Erroneous or Non-Provision of Depreciation
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-complianceThe agency did not correctly calculate and record depreciation for its buildings, equipment, and infrastructure. This made the assets appear more valuable and the expenses too low, with a total error of about P4.86 billion.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"Audit showed that several DPWH Offices were not able to and/or erroneously provide the appropriate amount of depreciation for their respective PPE accounts, which resulted in the net understatement of Depreciation Expense/Accumulated Surplus/(Deficit) and Accumulated Depreciation accounts both by an aggregate amount of P4,857,479,221.85 as shown in the following table:"