The financial statements do not include information about interest that has been earned but not yet received, making it harder to understand the receivables.

Why It Matters

Recommended Actions

• Require the AD to: Ascertain the complete recording of the GA/SRs by checking the sequential series of the approved GA/SRs, as well as the cancelled awards and Schedule of Rebates for each project, prior to the preparation of the Sales Register Report
• Design a periodic monitoring report for SO/RO/DOs to ensure the provision of complete and accurate beneficiaries' transactions and verify the account balances against the SOBAL and ARs to check the reliability of accomplished monitoring report
• Assign accounting personnel who will be responsible for the reconciliation of the recorded receivables balances per project against the SOBAL and AR monitoring reports to keep track of any unrecorded transactions and misclassification of accounts as Current and Non-current assets
• Adjust and/or refrain from using the Accumulated Surplus account to record the effect of changes in accounting estimates, pursuant to Paragraphs 37 to 41 of IPSAS 3
• Disclose in the Notes to FS the accrued interest recognized in the books to facilitate stakeholders' understanding of the receivable accounts
• Coordinate immediately with the COSDD to enhance the BCS, ensuring the inclusion of controls on all reports needed by the SO/RO/DOs for monitoring purposes and submit these reports to AD for recording
• And Require the COSDD to fast-track the enhancement of BCS-generated Aging Reports and other reports to ensure reliable reporting of financial information and to attain fair presentation in the FS.

Original Audit Finding Excerpt

"¥. Disclose in the Notes to FS the accrued interest recognized in the books to facilitate sakeholders’ understanding ofthe receivable accounts, vi. Coordinate immediately with the COSDD to enhance the BCS, ensuring the inclusion of controls on all reports needed by the SO/RO/DOs for monitoring purposes and submit these reports to AD for recording, and Image image12.png: d. Require the COSDD to fast-track the enhancement of Billing and Collections System generated Aging Reports and other reports to ensure reliable reporting of financial information and to attain fair presentation inthe FS. For the lapses in the monitoring and recording of PE 7 Perform regular and timely reconciliation between the accounting records and Reports fon the Physical Count of Property, Plant and Equipment/Inventory and Inspection Report of Unserviceable Properties (RPCPPEJIIRUP) in accordance with the relevant COA Circular to promply address any discrepancies; Obtain supporting documents such as Deed of"

Source Document