Doubtful Accuracy of Trust Liabilities Due to Confirmation Discrepancies
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe trust liability balance may be inaccurate because many source agencies reported different amounts, and some agencies have no balance at all.
Why It Matters
Recommended Actions
- Exert efforts to determine possible causes of discrepancies/variances between amount per books and amount confirmed by the various source agencies
Original Audit Finding Excerpt
"The accuracy and reliability of Trust liabilities account amounting to P4.743 billion is doubtful due to the material net variance amounting to P406.248 million disclosed on the results of confirmation of balances from source agencies, which is mainly attributable to non-recognition of trust accounts of some source agencies, recognition of bank interest and collections from beneficiaries, and differences in cut-off dates on the submitted Statement of Receipts and Disbursements (SRDs), contrary to Paragraph 27 of IPSAS 1, and Items 1 and 4.6 of COA Circular No. 94-013 dated December 13, 1994."