The agency committed to spend more money on housing projects than its budget allotments allowed, creating an overspending situation of about P17.995 billion.

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Original Audit Finding Excerpt

"(2) “Allotment” refers to an authorization issued by the Department of the Budget to an agency, which allows it to incur obligations for specified amounts contained in a legislative appropriation. (11) “Obligation” refers to an amount committed to be paid by the Government for any lawful act made by an authorized officer for and in behalf of the government. (Emphasis ours) In pursuit of the Authority’s mandate to produce housing projects for the public, it utilizes funds received from the National Government through Notice of Cash Allocations (NCAs). For CYs 2015-2021, the Authority has the following cumulative data of funds utilization: The Authority reported a positive balance for the subsidies received for CYs 2015 and 2017 but incurred cash deficit for CYs 2016, 2018, 2019, 2020 and 2021. To meet the cash deficits, the Authority has been borrowing funds from its corporate receipts and trust funds from other government agencies. Interview disclosed that the Authority entered in"

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