Improper derecognition and non-derecognition of unserviceable equipment
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceSome old equipment was written off without the required paperwork, while other disposed equipment was never removed from the accounting records, so the reported property values were wrong.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"Audit showed that various unserviceable equipment in the amount of P1,490,055.36 were disposed and dropped from the books of accounts, despite the absence of IIRUP and proper disposal procedures. On the other hand, unserviceable equipment amounting to P34,281,439.27, which were actually disposed of, were still carried in the books of various DPWH Offices."