JO personnel wages charged to EAO funds erroneously recorded as Labor and Wages expense
Department of Public Works and Highways · 2024
This summary was generated automatically from the source document and may contain errors. It is not an official interpretation and should not be relied upon as legal guidance. Review the original excerpt and source document to verify before citing or acting on it.
What Happened?
Category: Financial ManagementIssue: Non-complianceThe district office mistakenly booked job-order workers' wages paid from overhead funds as an operating expense instead of adding them to the cost of the projects, making expenses too high and project assets too low.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"Review and verification of the CY 2024 financial reports and documents of the DPWH Leyte 3 rd DEO in Region VIII disclosed that payments for wages of Job Order personnel totaling P26,616,504.08, which were charged to EAO funds, were erroneously recorded in the books as Labor and Wages expense."