Deficiencies in Recording and Monitoring of Property and Equipment
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Internal ControlThe agency has serious problems in tracking its property and equipment worth over 3.8 billion pesos, so the reported values may be inaccurate or incomplete, which misrepresents the financial statements.
Why It Matters
Recommended Actions
- Collaborate with the stakeholders, such as LGUs and water districts to obtain supporting documents such as DODA or DOTA for the proper disposition of PE assets, especially those recorded under PPMO and NGC books that are already occupied and/or used by beneficiaries;
Original Audit Finding Excerpt
"Several deficiencies noted on the recording, reporting, reconciliation and monitoring of the status of Property and Equipment (PE) accounts with a consolidated carrying value of P3.810 billion cast doubt as to its accuracy, completeness, and existence, contrary to the relevant provisions of IPSAS 1 and 17, thereby affecting the fair presentation of the financial statements."