Significant Reduction in Smokey Mountain Certificate Value
National Housing Authority · 2022
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What Happened?
Category: Financial ManagementIssue: ImpairmentThe value of the Smokey Mountain certificate dropped by over half due to losses, which may need further investigation.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"This account consists of the following: Accumulated surplus pertains to the cumulative results of operations of the NHA and subsidy funds received from the National Government. The NHA is a non-stock GOCC with an authorized capitalization of P500 million under PD No. 757 dated July 31, 1975. It was subsequently increased to P5 billion pursuant to PD No. 1924 dated May 6, 1984, to provide the NHA with the long-term capability to undertake the comprehensive national housing program for marginal and low-income families. The National Government paid and subscribed a total amount of P2.893 billion through subsidies from CYs 1976 to 2000, leaving a balance of P2.107 billion unsubscribed capital. The balance of NGC and MPLC's government equity amounting to P245 million in 2009 and P2.864 billion in 2005, was recorded in the books upon transfer of management and administration of the trust funds. Contributed capital mostly consists of properties acquired by NHA thru RAs, EOs, and PPs. In c"