Non-application of payments to receivable accounts
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: MisclassificationPayments received from customers were wrongly put into a deposit account instead of reducing the receivables, so both receivables and deposits are overstated.
Why It Matters
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Original Audit Finding Excerpt
"Of the 351 sample project accounts, 45 accounts with collections totaling P124.354 million were recorded under Deposit liabilities account, thus, overstating both the Receivable and Deposit liabilities accounts, excluding interests and penalties, due to the non-application of payments to said accounts."