Non-derecognition of replaced infrastructure assets due to incomplete documentation
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceReplaced roads, bridges and flood control systems worth about P31.99 billion remained on the books. Because records were incomplete, the agency could not verify or remove them, making the asset balances unreliable.
Why It Matters
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Original Audit Finding Excerpt
"Moreover, the balance of the Infrastructure Asset accounts of Regions III, V and X could not be relied upon due to the existence of replaced Road Networks, Bridges and Flood Control Systems aggregating P31,990,462,338.30, and which are already way beyond their useful life. Derecognition of these items could not be made due to lack and/or absence of complete documents and information."