Unrecorded Cancelled Awards
National Housing Authority · 2022
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What Happened?
Category: Financial ManagementIssue: Non-complianceCancellations of property awards were not recorded in the accounting books, inflating receivables while understating inventory and deferred credits.
Why It Matters
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Original Audit Finding Excerpt
"The NCR East and South SOs submitted Reports of Cancellation of Awards for six accounts under Karangalan Village – Medium Rise Housing (MRH) and one account under Tramo Housing Project, respectively, for CY 2022. However, the cancellations of awards were not recognized in the books, thereby overstating the Receivable accounts and understating the corresponding Merchandise inventory and Other deferred credits-Deferred gross profit accounts."