Deficiencies in Property and Equipment Accounts Recording and Reporting
National Housing Authority · 2024
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What Happened?
Category: Asset ManagementIssue: Internal Control DeficiencyThe National Housing Authority had major record-keeping and reconciliation weaknesses regarding its property and equipment assets worth nearly P2 billion. This included P894.927 million in assets with missing documentation, questionable existence, or improper classifications, making the financial statements unreliable.
Why It Matters
Recommended Actions
- Submit the plans on the idle 12 satellite offices, three multi-purpose centers, other structures/land improvements, and equipment located at the BP2 Depot
Original Audit Finding Excerpt
"Deficiencies in the recording, reporting, reconciliation and monitoring of Property and Equipment (PE) accounts, with a consolidated carrying value of P1.981 billion, cast doubt on the accuracy, completeness, and existence of these accounts, contrary to the relevant provisions of IPSAS 1 and 17, Presidential Decree (PD) No. 1445, and COA Circular No. 2020 -006, thereby impairing the fair presentation of PE in the FS."