Overstatement of Property, Plant and Equipment (PPE)
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency's property, plant and equipment balances were significantly wrong because many assets were not recorded, some expenses were not capitalized, and some assets that should have been removed were still on the books.
Why It Matters
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Original Audit Finding Excerpt
"Annex A 1 of 3 Summary of Misstatements Period Covered January 1 to December 31, 2024 Office/ Region Audit Observation/ Description of Misstatement Misstatements (Net) Adjusted by Management? Amount (In PhP) Accounts Affected Effect (Overstatement)/ Understatement (In PhP) (A) (B) (C) (D) Yes No CAR, II, V, VIII, IX, X, and XII 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 ✓ CO b) Understatement of Due from NGAs account due to unsupported/ unauthorized derecognition of dorman"