Failure to De-obligate Matured Obligations
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe office kept old unpaid commitments on the books even though they should have been cancelled after the payment period ended, which misstates liabilities and violates budget rules.
Why It Matters
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Original Audit Finding Excerpt
"Obligations incurred in CY 2021 to CY 2023 for payment of wages/overtime and other services totaling P2,824,606.77 presented as not yet due and demandable in Financial Accountability Report ( FAR) No. 3 were not de-obligated despite the lapse of its payment period."