The agency lacks a formal accounting manual, which led to missing records, errors, and a massive 3.727 billion peso difference between the financial books and the billing system for sampled projects, along with unusual negative balances.

Why It Matters

Recommended Actions

• Fast track the preparation of the accounting manual that will serve as a guide for each personnel and/or responsible Unit/Office in the proper and systematic recording, reporting and monitoring of beneficiaries’ transactions aligned with the provisions of applicable IPSAS, to include actions to be undertaken by concerned Offices such that SO/RO/DOs and Corporate Operations and Systems Development Department (COSDD) strictly comply with the timely submission of the required BCS generated reports such as GA/SRs, Schedule of Rebates, SOBAL and ARs to BAPD
• And facilitate the inclusion in the consolidated ARs the demandable accounts for the next 12 months after reporting period and those accounts that are not yet demandable for each project while the COSDD is currently enhancing the system.

Original Audit Finding Excerpt

"Absence of a manual on the manner of accounting, reporting, and monitoring of the NHA’s receivable accounts caused several lapses in the presentation of accounts in the financial statements (FS), thus, rendering the balance of the Receivables account as at December 31, 2022, doubtful, to wit: Incomplete recording and inadequate monitoring of beneficiaries’ transactions resulted in a discrepancy of P3.727 billion on the recorded Receivables account balance against the Statement of Balances (SOBAL) generated from the Billing and Collections System (BCS) for 250 sample projects out of 1,222 projects, affecting the fair presentation of Receivables, Other deferred credits, Revenue and Rebates expenses in the FS. Also, 85 projects out of the total sample 250 projects have negative receivable balances of P130.958 million as at December 31, 2022, cast doubt on the reliability of Receivable account balances."

Source Document