Doubtful accuracy and reliability of Trust liabilities account
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceA multi-billion-peso trust liability account had a massive discrepancy of over 406 million pesos when compared against confirmations from source agencies, largely caused by missing records of trust accounts, unrecorded interest, and timing differences.
Why It Matters
Recommended Actions
- Exert efforts to determine possible causes of discrepancies/variances between amount per books and amount confirmed by the various source agencies
Original Audit Finding Excerpt
"No. 5 | The accuracy and reliability of | We recommended and Accounting August December AD diligently adheres to the COA's Trust liabilities account | Management agreed to: Department 2024 2024 requirement for the annual preparation of amounting to P4.743 billion is Confirmation Letters various source doubtful due to the material net agencies of Trust Fund accounts. This aims variance amounting to to verify the existence of trust funds and to P406.248 million disclosed on obtain accurate and reliable financial the results of confirmation of information reported in the financial balances from source statements."