Non-application of Payments
National Housing Authority · 2022
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What Happened?
Category: Financial ManagementIssue: Non-complianceCollected payments from customers were left in deposit liability accounts instead of being applied to reduce their balances, causing both receivables and liabilities to be reported higher than they actually are.
Why It Matters
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Original Audit Finding Excerpt
"Out of the 250 sample project accounts, 79 accounts with collections totaling P139.872 million are still recorded under Deposit liabilities account, thus, overstating both the Receivable and Deposit liabilities accounts, excluding interests and penalties, due to non-application of payments to the said accounts."