Unreconciled Discrepancy in Receivables Account
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency's records of what beneficiaries owe do not match the billing system, with a large unreconciled difference and some negative balances, making the receivable amounts unreliable.
Why It Matters
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Original Audit Finding Excerpt
"Incomplete recording and inadequate monitoring of beneficiaries’ transactions resulted in a discrepancy of P11.161 billion in the recorded Receivables account balance against the Statement of Balances (SOBAL) generated from the Billing and Collections System (BCS) that remained unreconciled as December 31, 2023 for 351 sample housing projects out of 1,225 total projects, affecting the fair presentation of Rental receivable, Installments sales receivable and Loans and receivable-others, Other deferred credits, Revenue and Rebates expenses in the FS. Also, 94 projects out of the total 351 sample projects have negative receivable balances of P87.115 million as at December 31, 2023. Thus, casting doubt on the reliability of Receivable account balances."