Understatement of Cash and Cash Equivalents
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency's cash balance was reported lower than the actual amount because some bank credits, stale checks, petty cash, and cash advance refunds were not recorded correctly.
Why It Matters
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Original Audit Finding Excerpt
"a) Net understatement of Cash and Cash equivalents due to: • Unrecorded credit memoranda • Unreleased/stale checks not reverted to the cash account • Non-replenishment of Petty Cash Fund • Improper recording of refund of cash advance 1,962,178.12 Cash in Bank - LCCA Petty Cash Cash-Collecting Officer Due to NGAs Trust Liabilities Accounts Payable Appropriate Expense accounts Advances to Officers and Employees 2,049,272.17 (67,214.05) (19,880.00) 1,979,272.17 10,000.00 60,000.0 67,214.05 19,880.00 ✓"