Trust Liabilities Account Variance
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe amount the agency owes to others (trust liabilities) is not accurate. There is a big difference between what the agency says and what the source agencies confirm, making the reported balance unreliable.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"The accuracy and reliability of Trust liabilities account amounting to P4.743 billion is doubtful due to the material net variance amounting to P406.248 million disclosed on the results of confirmation of balances from source agencies, which is mainly attributable to non-recognition of trust accounts of some source agencies, recognition of bank interest and collections from beneficiaries, and differences in cut-off dates on the submitted Statement of Receipts and Disbursements (SRDs), contrary to Paragraph 27 of IPSAS 1, and Items 1 and 4.6 of COA Circular No. 94-013 dated December 13, 1994."