Overlapping Insurance Coverages for Communication Equipment and Building
Department of Public Works and Highways · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe district office renewed insurance policies for several assets while the current policies were still active, so they paid double premiums for a few months. This happened because the Supply Officer wanted to avoid a lapse in coverage but did not consider that the old policies were still valid.
Why It Matters
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Original Audit Finding Excerpt
"an evaluation of the Bataan 2nd DEO's insurance policies revealed five units of Communication Equipment and one Building with a total acquisition cost of P17,314,210.43 have overlapping insurance coverages. Records showed that their insurance coverages were renewed in September 2024 even though the corresponding policies are valid until December 2024. Consequently, the previous insurance policies became redundant, resulting in an unnecessary expenditure of approximately P32,779.47."