Improper Recording of BP2 Program Expenses
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency spent over P83 million on infrastructure and equipment for the BP2 program but incorrectly recorded these as expenses instead of assets, which misstates the financial statements.
Why It Matters
Recommended Actions
- A. Record the proper accounting entries to reflect the correct balance of the affected expense and asset accounts
- And
Original Audit Finding Excerpt
"NHA as designated Secretariat of the Council of the Balik Probinsya, Bagong Pag-asa (BP2) Program, provided technical and administrative support to the Council, built infrastructure projects, and purchased equipment for the BP2 Depot totaling P83.713 million from CY 2020 to CY 2022, which was improperly recorded in the books as expense in CY 2022, contrary to the provisions of IPSAS 17, thereby affecting the reliability and accuracy of the expense and related accounts in the FS."