Inadequate management of unapplied collections
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency had over 579 million pesos in unapplied collections that were not properly tracked. This caused the financial statements to be wrong, with liabilities and receivables overstated. The agency was told to set a plan to clean up these accounts, but it hasn't done so yet.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"Inadequacy of systematic reporting, coordination and evaluation of the unapplied collections for 484 project accounts amounting to P579.355 million lodged in Other Deferred Credits-Deposit Liabilities, a temporary account, from CYs 1994 to 2021 resulted in the overstatement of the Other deferred credits-Deposit Liabilities by P579.345 million and overstatement of Receivables and understatement of Revenue accounts by the same amount as at December 31, 2021."