Merchandise Inventory – Completed Development for Sale overstated by P195.744 million
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe value of completed housing units for sale is reported too high by about 195 million pesos because of poor project management and poor communication between departments. This misstates the financial statements.
Why It Matters
Recommended Actions
- Revisit the policy on the prohibition of sale of awarded housing units to third parties
- And
Original Audit Finding Excerpt
"The Merchandise Inventory – Completed Development for Sale for Land and Building accounts of NGC are overstated by P195.744 million as at December 31, 2024 due to inadequate management of housing projects and lack of coordination between the NGC -Estate Management Department (EMD) and the AD of NHA, contrary to Paragraph 11 of IPSAS 12, Paragraph 16 of IPSAS 29 and NHA’s MC No. 2642."