Misstatements in Cash and Cash Equivalents
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe cash balance reported is lower than it should be by about 2 million pesos because some transactions were not recorded correctly, such as credit memos, stale checks, petty cash issues, and cash advance refunds.
Why It Matters
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Original Audit Finding Excerpt
"The reported balance of Cash and Cash Equivalents accounts is net understated by P1,962,178.12 due to: (a) unrecorded credit memoranda totaling P1,989,272.17; (b) unreleased/stale checks not reverted to cash account totaling P60,000.00; (c) erroneous entries and non-replenishment of Petty Cash Fund in the total amount of P67,214.05; and (d) improper recording of refund of cash advance in the amount of P19,880.00."