Dormant Balances in Advances to Contractors
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency paid contractors in advance for projects, but many of these advances were never settled or collected. Almost 518 million pesos has been sitting in the accounts for years, and the agency does not know how to close them out.
Why It Matters
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Original Audit Finding Excerpt
"Review and analysis of the balances of Advances to Contractors accounts revealed that advance payments for 111 projects of various DPWH Offices aggregating P518,493,182.67 had been dormant for over 3 to 10 years."