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SiPAT

Unused Compensated Absences Not Recognized as Expense or Liability

Pulilan · 2024

Severity: ModerateRecommendation: Unknown

What Happened?

Category: Financial ManagementIssue: Non-compliance

The municipality only records vacation and sick leave costs when workers are paid for unused leave. Under proper accrual accounting, the cost of leave owed to employees at the end of the year should be recorded as an expense and a liability in the same year, even if it is not paid yet.

Why It Matters

Recommended Actions

No recommendations are available for this finding yet.

Original Audit Finding Excerpt

"Unused entitlements that have accumulated at the reporting date are not recognized as expense."

Source Document

Pulilan2024_Audit_Report.pdf

Pulilan · 2024 AAR · 3 files