Unreconciled Inventory Balances
Department of Public Works and Highways · 2023
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What Happened?
Category: Inventory ManagementIssue: Inaccurate financial reportingThe inventory records kept by accounting and supply sections do not match. The difference is more than 215 million pesos, making the inventory balances unreliable.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"163 (c) other lapses/deficiencies noted in the internal control system in the cash management of DPWH Offices contrary to Section 3, Chapter 21, Volume I of the Government Accounting Manual for National Government Agencies and COA Circular No. 97-001. a) Unreconciled discrepancies between the books and confirmed bank balances – P6,552,174.04 2.1 Section 3, Chapter 21, Volume I of the GAM for NGAs provides : “the Bank Reconciliation Statements (BRS) shall be prepared in order to: (a) check the correctness of both the bank’s and agency’s/entity’s records; (b) serve as deterrent to fraud; and (c) enable the agency/entity or bank to take up charges or credits recognized by the bank or agency/ entity but not yet known to the agency/entity or bank. This shall be used in the reconciliation of bank and treasury accounts maintained with Government Servicing Bank (GSB).” 2.2 The reported Cash-in-Bank balance of P6,552,174.04 of Camarines Sur 5th DEO in Region V pertained to"