Absence of Turnover Documents for Derecognition of Completed Projects
Department of Public Works and Highways · 2024
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What Happened?
Category: Property, Plant and EquipmentIssue: Inaccurate ReportingThousands of completed construction projects, worth over P15.5 billion, have already been handed over to the agencies that use them, but the DPWH still counts them as its own assets because the paperwork to formally transfer them was not completed. This makes the government's asset balances look larger than they truly are.
Why It Matters
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Original Audit Finding Excerpt
"Review and validation of the SL balances of PPE account revealed that 1,138 completed infrastructure projects, with a total cost of P15,507,692,268.59 and implemented by various DPWH Offices, have already been physically transferred and are currently in use by the respective end-users or recipient agencies. Despite this, the projects remain recorded in the books of the implementing offices, resulting in an overstatement of the PPE and Accumulated Surplus/(Deficit) accounts by the same amount."