Unreliable Work-in-Process Inventory Balance
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe amount shown for ongoing construction projects is not trustworthy because it does not match other records and includes projects that are already finished or stopped, which should not be counted as ongoing.
Why It Matters
Recommended Actions
- Review the WIP Inventory account and the RPPPA to ensure that only active and ongoing housing projects are reflected in both records, and prepare the necessary adjusting journal entries to reclassify the completed projects to the appropriate account
Original Audit Finding Excerpt
"Page 8 of 90 AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION AS AT AUGUST 31, 2025 RESULTS OF COA VALIDATION Ref. (No. in the AAR) Audit Observations Audit Recommendations Agency Action Plan Status of Implementation Reason for Partial/Delay/ Non- Implementation, if applicable Action Taken/Action to be Taken Date of Follow-up Status of Implementation Actual Implementation Date Remarks Action Plan Person/ Department Responsible Target Implementation Date From To From To d. Coordinate with the concerned Offices and derecognize non -existing PE items in the books of accounts in accordance with COA Circular No. 2020-006; Implemented continuou"