Overstatement of Merchandise Inventory - Completed Development for Sale by P195.744 Million
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe agency's inventory of unsold housing units is too high because many units have already been awarded to people, but the agency hasn't recorded the corresponding receivables. This makes the financial statements inaccurate.
Why It Matters
Recommended Actions
- Identify the units that were already awarded with the corresponding sales report
Original Audit Finding Excerpt
"The Merchandise Inventory – Completed Development for Sale for Land and Building accounts of NGC are overstated by P195.744 million as at December 31, 2024 due to inadequate management of housing projects and lack of coordination between the NGC-Estate Management Department (EMD) and the AD of NHA, contrary to Paragraph 11 of IPSAS 12, Paragraph 16 of IPSAS 29 and NHA’s MC No. 2642."