Completed projects not reclassified from CIP to appropriate PPE accounts
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceWhen a construction project is finished, its cost must be moved from a temporary 'under construction' account to the permanent asset account for roads, buildings, or other infrastructure. The agency left completed projects in the temporary account, making its financial statements inaccurate and unreliable.
Why It Matters
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Original Audit Finding Excerpt
"1.104 Moreover, the late recording of completed projects in the appropriate infrastructure accounts is not in accordance with Section 8(g), Chapter 10, Volume I of the GAM for NGAs, which requires recognition of completed projects in the books of the agency upon project completion."