Abnormal/Negative Balances in Advances to Contractors
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe account that tracks advances paid to contractors shows negative balances, meaning the agency's books are incorrect. This is caused by data entry errors and improper accounting, which makes the financial statements unreliable.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"Audit of the Advances to Contractors account also showed the existence of abnormal/negative balances in the book of accounts totaling P4,851,565.46 as follows:"