Unreconciled Cash in Bank Items and Weak Internal Controls
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe cash balance is overstated because some deposits and withdrawals were not recorded, and there are long-standing unreconciled items due to missing documents and weak controls.
Why It Matters
Recommended Actions
- Set up a meeting with bank officers of depository banks to obtain debit and credit memos, along with their supporting documents, pertaining to the reconciling items reflected in the BS
Original Audit Finding Excerpt
"Non-recording or adjustment in the Cash in bank account as at December 31, 2023 of the reconciling items, resulted in a net overstatement of the account by P740,104, consisting of unrecorded deposits, bank debits/credits, and other book adjustments of P817,197, P1.994 million, and P436,995, respectively, in the absence of supporting documents to facilitate identification of depositors and determination of the nature of transactions, contrary to Paragraph 27 of IPSAS 1 and Paragraph 3.10 of the Conceptual Framework."