Lack of Budget Allocation Leading to Allotment Overdraft
National Housing Authority · 2022
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What Happened?
Category: Financial ManagementIssue: Weakness in ControlsThere is no mandatory check that money is actually set aside in the budget before signing housing contracts. Because of this, the government has spent more than was budgeted, creating overspending problems.
Why It Matters
Recommended Actions
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Original Audit Finding Excerpt
"Moreover, the CBIA Omnibus Guidelines do not require a Certificate of Budget Allocation to determine the funding source for the housing project and the procedures on the coordination between the Regional/District Office and the Financial Management Department under the FSG for the budgeting of the project. Hence, the Authority incurs allotment overdraft for the excess of total cost of contracts over the total allotments for the implementation of housing programs."