Lack of Required Appraisal Reports
National Housing Authority · 2022
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe government did not get independent appraisals from the required three experts (two private, one government) to determine fair prices for the land and houses. Without these, the government may have paid too much or too little, leading to financial loss or project failure.
Why It Matters
Recommended Actions
- The NHA Operating Unit shall secure appraisal from two
- Accredited private appraisers and one appraiser from the government, in accordance with MC No. 1502 dated 17 April 2000, to determine the reasonable cost of acquiring developed lots inclusive of raw land cost and completed housing units under CBIA.
Original Audit Finding Excerpt
"19 out of 24 housing contracts have no appraisal reports from two accredited private appraisers and one appraiser from the government, as required by the CBIA Omnibus Guidelines."