Inventory accounts misstated due to unrecorded receipts and issuances
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceDPWH did not correctly record some inventory received and used during the year, and also recorded some supplies as expenses instead of inventory, causing the inventory balance to be wrong.
Why It Matters
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Original Audit Finding Excerpt
"The reported balance of Inventor y accounts is net overstated by P18, 386,556.41 due to: (a) unrecorded receipts of inventories total ing P4,744,989.55; (b) unrecorded issuance s of inventory and semi -expendable properties aggregating P24,596,961.04; and (c) erroneous recording of supplies an d materials as outright expenses totaling P1,465,415.08, which are not in accordance with the relevant Sections under Chapter 8, Volume I of the Government Accounting Manual for National Government Agencies and COA Circular No. 2022-004."