The agency has not kept accurate records for employee leave credits and terminal benefits, and the reported amounts are overstated by over 2 million pesos because the human resources department did not provide the required supporting documents.

Why It Matters

Recommended Actions

• Require the HRMD to comply with Memorandum dated February 28, 2023 of the AD on the submission of the subsidiary ledger/monitoring of accumulated leave credits of NHA employees;

Original Audit Finding Excerpt

"The recorded cumulative earned leave credits and/or terminal benefits of NHA officials and employees amounting to P485.162 million is not accurately recorded due to non-submission of the Human Resource Management Department (HRMD) of the accurate cumulative earned leave credits with monetary value as at December 31, 2022. In addition, the determination of current expense (terminal leave benefits) and Accumulated surplus/(deficit) for prior years’ charges are based on the calculation of the AD, which lacks supporting SLs per employee to arrive at the correct balance of earned leave credits for CY 2022, CY 2021 and accumulated balance at the beginning of CY 2021, resulting in the overstatement of both the Due to officers and employees and Accumulated surplus/(deficit)–prior years’ charges terminal leave benefits accounts by P2.150 million."

Source Document