Dormant Asset and Liability Accounts Remain Unsettled for Years
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceSome old accounts have not been resolved for decades due to missing documents, casting doubt on their existence.
Why It Matters
Recommended Actions
- Management strictly enforce the proper turnover of accountabilities to maintain records for verification and validation of dormant accounts, ensure compliance by the responsible units for the periodic reporting of status of each dormant account, regularly coordinate among concerned Department/Offices/Unit on the case encountered for unresolved dormant accounts, and fast track the completion of the documentary requirements for request of authority to write off the dormant accounts.
Original Audit Finding Excerpt
"Dormant assets and liability accounts with a net amount of P293.273 million remained unsettled and outstanding for 16 to 45 years due to lack of documents and financial records, contrary to Paragraph 3.10 of Conceptual Framework General Purpose Financial Reporting (Conceptual Framework), Paragraph 27 of IPSAS 1 and relevant provisions of COA Circular No. 2023-008 thereby cast doubts on the existence of the asset and liability due to the inclusion of these dormant accounts."