Unrecognized Contingent Liability
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe NHA has a potential obligation of over 4 billion pesos that is not recorded in its financial statements.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"The NHA’s contingent liability of P4.119 billion to HGC, now PHILGUARANTEE, relative to the terminated Smokey Mountain Asset Pool (SMAP) Agreement, has not yet been recognized in the books pending the results of the evaluation, reconciliation, coordination/mediation, and compromise with the parties concerned."