Overstatement of Inventory Accounts
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency's inventory balance was too high because some items received were not recorded, some issued items were not taken out, and some purchases were incorrectly expensed instead of recorded as inventory.
Why It Matters
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Original Audit Finding Excerpt
"d) Net Overstatement of Inventory accounts due to: • Unrecorded receipt of inventories • Unrecorded issuances of inventories • Erroneous recording of inventory as an outright expense 18,386,556.41 Appropriate Inventory Accounts Accounts Payable Subsidy from Regional Office Due from NGAs Appropriate Expense Accounts (18,386,556.41) 3,905,785.89 785,893.87 (53,309.79) 23,131,545.96 ✓"