Misclassification within PPE accounts totaling P58,104,324.41
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency recorded some fixed assets in the wrong asset categories. For example, a building or road was recorded under land improvements, or a power supply system was recorded as construction equipment. The total value was correct, but the details on the balance sheet were wrong, which can mislead managers and prevent effective asset management.
Why It Matters
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Original Audit Finding Excerpt
"1.108 Analysis of the PPE accounts showed that various items were inappropriately recorded under other PPE accounts, thereby overstating the PPE account and understating the other PPE account, amounting to P58,104,324.41."