Discrepancies and Negative Balances in Receivable Accounts
National Housing Authority · 2024
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What Happened?
Category: Financial ReportingIssue: Accounting ErrorThere are major mismatches between the accounting books and the billing system records, plus abnormal negative balances in installment sales accounts, making the financial data unreliable.
Why It Matters
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Original Audit Finding Excerpt
"Incomplete recording and inadequate monitoring of beneficiaries’ transactions resulted in a discrepancy of P11.081 billion in the recorded Receivables account balance against the Statement of Balances (SOBAL) generated from the Billing and Collections System (BCS) for 395 sample projects out of 1,150 total projects, affecting the fair presentation of the Receivables and related accounts in the FS. Additionally, negative balances in the Installment Sales Receivables of P106.786 million were noted in the sampled projects as at December 31, 2024, casting doubt on the reliability of the Receivable accounts balances."