Trust Liabilities Account with Non-Moving Subsidiary Accounts
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe Trust liabilities account has old and inactive subsidiary accounts that were not properly documented or settled, which misrepresents the financial statements and violates COA rules.
Why It Matters
Recommended Actions
- Liquidate and/or return the unused fund including the interest thereof to the Source Agency for those trust liability accounts which are nonmoving and had already been completed
- And prepare SRDs for ali trust funds particularly those without separate bank accounts and subsidiary records as at December 31, 2023.
Original Audit Finding Excerpt
"The Trust liabilities account included eight non-moving and long outstanding subsidiary accounts amounting P49.735 million as at December 31, 2023 due to non-preparation of SRDs, among others, affecting the fair presentation of the account in the financial statements, contrary to Item 4.9 of COA Circular No. 94-013."