Unrecorded bank credit memoranda understate cash accounts
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceSome money that arrived in DPWH's bank account in 2024 was not written in the accounting books that year, making cash and related liability balances look smaller than they really were.
Why It Matters
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Original Audit Finding Excerpt
"Review and validation of the submitted BRS and analysis of the CIB -LCCA balance revealed that book reconciling items on the account of the DPWH Bukidnon 2nd District Engineering Office (DEO) representing a fund transfer from the Department of Agrarian Refo rm (DAR) Central Office (CO) in the amount of P1,979,272.17, credited to the agency’s account on November 20, 2024, was not recorded in the books and remained a reconciling item until year -end. Likewise, payments for bidding documents totaling to P10,000.00 that were directly remitted to the agency's bank account in Calendar Year ( CY) 2024 were only recorded in the books in the following year."