Understatement of Expense Accounts
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency did not record or classify its expenses correctly, and also failed to record depreciation, causing reported expenses to be too low.
Why It Matters
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Original Audit Finding Excerpt
"k) Net Understatement of Expense Accounts due to: • Non-recording/non-accrual of CY 2024 expense • Erroneous recording of expenses in the proper accounting period • Improper classification of expense accounts • Erroneous/Non-Provision of Depreciation 4,820,153,543.07 Various Expense accounts Accounts Payable Accumulated Surplus/(Deficit) Depreciation Expense Accumulated Depreciation (63,926,240.86) 6,499,149.87 (70,425,390.73) 4,884,079,783.93 4,884,079,783.93.14 ✓"