The agency entered into housing contracts without having the actual funds available, leading to billions in overdrafts and dozens of suspended housing projects due to lack of money.

Why It Matters

Recommended Actions

• Management: a. Ensure that all contracts to be awarded to contractors for the proposed housing projects have sufficient funds, pursuant to Item 5.7 of DBM Circular No. 2010-9 dated December 30, 2010, by requiring Certificate of Budget Allocation prior to the awarding of contracts.
• And b. Ascertain that all contracts to be entered into are within the total allotments released by the DBM, pursuant to Section 41, Chapter 5, Book VI of EO No. 292 or the Administrative Code of the Philippines, by dividing the budget for each RO/DO and informing them their respective budgets for operation so that every RO/DO is aware of their remaining budget limit as of a given period.

Original Audit Finding Excerpt

"Republic of the PAhilippines COMMISSION ON AUDIT Commonwealth Avenue, Quezon City, Philippines CORPORATE GOVERNMENT AUDIT SECTOR CLUSTER 2 — SOCIAL SECURITY June 30, 2023 Ce Mr. JOEBEN A. TAI Rogelo lov General Manager tice o General Manage National Housing Authority — 6 J ZO Ae Z / Elliptical Road, Diliman, Quezon City Pursuant to Section 2, Article IX-D of the Philippine Constitution and Section 43 of Presidential Decree No. 1445, otherwise known as the Government Auditing Code of the Philippines, we transmit herewith our report on the results of the audit of the accounts and transactions of the National Housing Authority (NHA) for the years ended December 31, 2022 and 2021. Dear General Manager Tai: The report consists of the Independent Auditor’s Report, Audited Financial Statements, Observations and Recommendations, and the Status of Implementation of Prior Years’ Audit Recommendations. The Auditor rendered a qualified opinion on the fairness of presentation of the financi"

Source Document