Misclassification of Property, Plant, and Equipment items
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: MisclassificationMillions of pesos worth of physical assets were lumped into generic or incorrect categories rather than their specific asset accounts.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"k. Misclassification of PPE items – P645,756,024.14 28. We recommended and Management of Lower Kalinga District Engineering Office (DEO) in CAR, Romblon DEO in Region IV -B, Camarines Sur 4th DEO in Region V, Samar 1 st DEO in Region VIII, Zamboanga del Norte 4 th DEO in Region IX, Cagayan de Oro City 1 st DEO in Region X, Cotabato 3rd DEO in Region XII and Agusan DEO Sur 2nd DEO in Region XIII agreed to direct the Accountants to prepare necessary journal entry for the reclassification of the items of Property, Plant and Equipment (PPE) incorrectly recorded to Other PPE accounts to their proper accounts totaling P645,756,024.14."