Deficiencies in Property and Equipment Account Management
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThere are serious problems with how the entity handles its Property and Equipment accounts. The records may not be accurate or complete, and the existence of these assets is uncertain, which could mislead users of the financial statements.
Why It Matters
Recommended Actions
- Submit the plans on the idle 12 satellite offices, three multi-purpose centers, other structures/land improvements, and equipment located at the BP2 Depot
Original Audit Finding Excerpt
"Several deficiencies noted on the recording, reporting, reconciliation and monitoring of the status of Property and Equipment (PE) accounts with a consolidated carrying value of P3.810 billion cast doubt as to its accuracy, completeness, and existence, contrary to the relevant provisions of IPSAS 1 and 17, thereby affecting the fair presentation of the financial statements."