Misstatements in Other Assets Accounts
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceOther assets are overstated by about 341 thousand pesos because of errors in recording contractor advances and prepaid insurance.
Why It Matters
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Original Audit Finding Excerpt
"The reported balance of the Other Assets accounts is net overstated by P341,065.59 due to: (a) errors and omissions in the recording of Advances to Contractors due to non-recording of recouped/recovered advances amounting P32,696.77 and erroneous accounts used in recording recoupment and progress billings totaling P1,284,627.88; and (b) erroneous recording of Prepaid Insurance due to non-adjustment of the unexpired portion of prepayments initially recorded as an expense totaling P1,157,403.06 and misclassifications of insurance prepayments amounting to P181,144.00."