Insufficient Liquidated Damages Deducted for Contract 17KD0061
Department of Public Works and Highways · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceFor a construction project costing about 21.8 million pesos, the government only deducted a small amount of late fees. The auditor found that an additional 92,173.84 pesos should have been charged. The project engineer explained why, but the issue has not been fully resolved.
Why It Matters
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Original Audit Finding Excerpt
"COA AOM was issued due to insufficient LD deducted to the project. Thus, the Project Engineer has already provided a written justification dated September 9, 2024 for the additional Liquidated Damages amounting Php 92,173.84 for the Contract ID No. 17KD0061 with Contract Cost of Php 21,844,708.63."