The agency filed its taxes incorrectly by claiming all its income was tax-exempt, even though it earns from commercial activities. It also did not properly account for taxes withheld from payments, which could lead to penalties from the tax authority.

Why It Matters

Recommended Actions

• Review and update the COR of NHA, declaring all the sources of income to ascertain correct tax obligations;

Original Audit Finding Excerpt

"Ref. Audit Observations Audit Recommendations Agency Action Plan Action Plan Person/Dept. Target Implementation Date Responsible From To Status of implementation Reason for Partial/Delay/ Non- Implementation, if applicable Action Taken/Action to be Taken nature and amount of any adjustments; and COSDD: i. Fast track the enhancement of the BCS on the generation of Aging and other reports that will require reliable financial information/ report to attain fair presentation of the accounts in the FS. CY 2023 AAR Observation No. 3, page 92 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. a. The reliability of Land, Other Land Improvements, Infrast"

Source Document