Non-Application of Payments
National Housing Authority · 2024
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What Happened?
Category: Financial ReportingIssue: Accounting ErrorCustomer payments were incorrectly parked in deposit liability accounts instead of reducing their loan balances, inflating both liabilities and receivables.
Why It Matters
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Original Audit Finding Excerpt
"Of the 395 sample project accounts, collections from 248 accounts totaling P222.104 million were recorded under Deposit Liabilities account, resulting in the overstatement of both the Receivable and Deposit Liabilities accounts, excluding interests and penalties, due to the non-application of payments to the said accounts."