Misstatements in Inventory Accounts
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe inventory balance is overstated by about 18 million pesos because some inventory receipts and issuances were not recorded, and some supplies were incorrectly expensed.
Why It Matters
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Original Audit Finding Excerpt
"The reported balance of Inventory accounts is net overstated by P18,386,556.41 due to: (a) unrecorded receipts of inventories totaling P4,744,989.55; (b) unrecorded issuances of inventory and semi-expendable properties aggregating P24,596,961.04; and (c) erroneous recording of supplies and materials as outright expenses totaling P1,465,415.08."