Loans and financial assistance were improperly recorded and later reclassified as inventory because the associated properties lacked awarded beneficiaries, resulting in misstated account balances in prior periods.

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Original Audit Finding Excerpt

"The CY 2021 Financial Statements are restated in accordance with IPSAS 1, IPSAS 35, and COA Circular No. 2017-004. The restatement specifically pertains to the consolidation of the financial statements of the NHA and the trust funds for the CISFA, NGC and MPLC. Statement of Financial Position Receivables, net includes the reclassification from Non-current to Current portion (see Notes 5.1 and 31.2.2). It also includes restatement with Accumulated surplus account to adjust payment made by the City Government of Cebu for the Slum Upgrading Project (Hipodromo) amounting to P49,266. Contributed capital includes restatements to take up land cost of Parola Estate Project and Paoay Lakeview Upgrading Project affecting Inventories and Property and equipment accounts, respectively, (see Note 18). Inventories and Other payables accounts also include the restatement to transfer cost of land and survey works and titling of Parola Estate Project and related contingent liability for the remaini"

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