Unreclassified Completed Projects from CIP to PE Accounts
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceSome finished buildings are still listed as 'under construction' instead of being moved to the proper asset category, which makes the financial statements wrong and understates depreciation costs.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"b. Completed and operational projects from the CIP-Building and Other Structures account totaling P119.742 million were not reclassified to their appropriate PE accounts resulting in the overstatement of Accumulated Surplus by P2.507 million and understatement of Depreciation Expense and Accumulated Depreciation by P3.599 million and P6.106 million, respectively, due to the non-recognition of corresponding depreciation."