NHA lacks an official accounting manual and formal policies for recording and monitoring receivables, which leads to unreliable financial statements for its P63.641 billion receivable balance.

Why It Matters

Recommended Actions

• Management fast-track the preparation of an 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 the applicable IPSAS, and include actions to be undertaken by concerned Offices such that SO/RO/DOs and COSDD strictly comply with the timely submission of the required BCS-generated reports (GA/SRs, Schedule of Rebates, SOBAL, and Aging Reports to AD-BAPD) and facilitate the inclusion of accounts that are not only demandable and in arrears/past due, but also those demandable for the next 12 months after the reporting period, and those not yet demandable for each project in the consolidated ARs while the COSDD enhances the system.

Original Audit Finding Excerpt

"Absence of a manual or policy on accounting, reporting, and monitoring of the National Housing Authority’s (NHA) receivable accounts caused several lapses in the presentation of accounts in the financial statements (FS), thus, rendering the accuracy of the Receivables account totaling P63.641 billion as at December 31, 2024, doubtful, to wit:"

Source Document