Deficiencies in Property and Equipment Accounting
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency's records for its buildings and equipment are not reliable, so it's uncertain whether the reported value of these assets is correct or if they even exist.
Why It Matters
Recommended Actions
- Coordinate with the concerned Offices and derecognize non-existing PE items in the books of accounts in accordance with COA Circular No. 2020-006;
Original Audit Finding Excerpt
"Deficiencies in the recording, reporting, reconciliation and monitoring of Property and Equipment (PE) accounts, with a consolidated carrying value of P1.981 billion, cast doubt on the accuracy, completeness, and existence of these accounts, contrary to the relevant provisions of IPSAS 1 and 17, Presidential Decree (PD) No. 1445, and COA Circular No. 2020-006, thereby impairing the fair presentation of PE in the FS."