Lack of Policy for Assessing Impairment of Property, Plant and Equipment
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceNHA doesn't have a rule for checking whether its assets have lost value (impairment). Without this, the financial statements might overstate the value of assets.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"Each government agency shall record its financial transactions and operations conformably with generally accepted accounting principles and in accordance with pertinent laws and regulations. As at December 31, 2024, the consolidated carrying value of PE in the books of accounts which include PEs under the NHA (Main Office), Comprehensive and Integrated Shelter Financing Act (CISFA), NGC and Pinatubo Project Management Office (PPMO), totaled P1.981 billion. Details are as follows: Table 2.1 Schedule of Consolidated Carrying Value of PE Account Review of the financial records, corroborated with the Notes to FS revealed that the Land account consists of: (a) Housing and community development administrative site, which represents the cost of the land utilized as administrative sites for project offices of NHA, staff buildings, and livelihood centers; and (b) Land assembly for future projects, which represents the cost of undeveloped lots acquired for eventual development or redevelopmen"