Incomplete Recording and Misclassification of BCDA Properties
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Inaccurate RecordingNHA recorded properties received from BCDA incorrectly, causing major errors in its financial statements. Some accounts are overstated, others understated, and the true value of some properties is unknown.
Why It Matters
Recommended Actions
- A. Require all concerned SO/RO/DOs to submit to AD the DOTA of any property conveyed to NHA for ide complete recording of all property and asset transactions in the books;
Original Audit Finding Excerpt
"Incomplete recording and misclassification of the Bases Conversion and Development Authority (BCDA) properties conveyed to NHA resulted in the overstatement of PE-Land and Contributed Capital accounts by P73.759 million and P242.724 million, respectively, and understatement of Merchandise Inventory-Completed Development - Land for Sale, Investment Property, and Accumulated Surplus accounts by P74.054 million, P210.038 million, and P452.763 million, respectively. The Merchandise Inventory-Completed Development-Land for Sale and Accumulated Surplus are further understated by undetermined amounts due to the inability to determine the fair values of the conveyed properties in Lupang Katuparan (LK) and Philippine Centennial Village (PCV)."