Non-reclassification of Completed Projects from CIP to Appropriate Asset Accounts
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe DPWH did not move the cost of finished projects from the 'under construction' account to the correct asset accounts when the projects were completed. This makes the financial statements misleading about what assets the agency actually has and what they are worth.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"1.88 Likewise, other remaining items/balances and/or disbursements charged from the total project cost that are directly related to the completed projects have remained in the CIP accounts and were not reclassified to the appropriate asset accounts, totaling P382,659,074.32, as summarized hereunder:"