Misclassification of Past Due and Demandable Accounts
National Housing Authority · 2024
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What Happened?
Category: Financial ReportingIssue: MisclassificationOver one billion pesos in overdue receivables that should be marked as current assets were incorrectly classified as non-current assets.
Why It Matters
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Original Audit Finding Excerpt
"Past due and demandable accounts of beneficiaries totaling P1.062 billion and an undetermined amount due within the next 12 months were misclassified under the Non-Current Receivable account, while the reliability of balances of accounts not yet due and demandable is doubtful due to the absence of a BCS’s utility program that would report a complete and accurate list of accounts not yet due and demandable."