Absence of Formal Policy on Accounting, Reporting, and Monitoring of Receivables Account
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceNHA does not have a written policy for managing its receivables (money owed to it), which caused errors in how these amounts were reported. The total receivables were about P68 billion in 2024 and P64.7 billion in 2023, but the auditor could not verify these figures because records were inadequate, making the reported amounts unreliable.
Why It Matters
Recommended Actions
- Fast track the preparation of the accounting manual that will serve as a guide for each personnel and/or responsible Unit/Office to cautiously comply with proper and systematic recording, reporting, and monitoring of beneficiaries’ transactions aligned with the provisions of applicable International Public Sector Accounting Standards
Original Audit Finding Excerpt
"The absence of a manual or formal policy on the accounting, reporting, and monitoring of the Receivables account resulted in several lapses in the presentation of said account, with balances totaling P68,023 billion and P64.691 billion as at December 31, 2024 and 2023, respectively, thereby casting doubt on the reliability of the Receivables and related accounts"