Financial reports on collections are inaccurate and unreliable, and the agency is failing to collect a major portion of its billions in outstanding receivables.

Why It Matters

Recommended Actions

• Management design a collection evaluation report showing a more realistic reporting of collection efficiency by: a. considering the significant number of the accounts with issues that were deducted from the projected total amount due and target collection
• B. reconciling the reported housing projects and leased property in the CER by the SO/ROs with the consolidated BCS Aging Reports and books
• And c. preparing separate report on the reconciliation of actual collections presented in the CER and Statement of Cash Flows and restricted funds.

Original Audit Finding Excerpt

"The collection efficiency rates reported in the Collection Evaluation Report (CER) could not be relied upon due to improper and incomplete reporting of total amount due and actual collection which may mislead its users. Further, NHA has low collection efficiency of 23 per cent out of the total outstanding receivables for residential and commercial property amounting to P18.308 billion as at December 31, 2022, due to inadequate monitoring and enforcement of sanctions under certain provisions of PD No. 1472, MC Nos. 2596 and 003, Individual Loan Agreement and Conditional Contract to Sell, thereby, NHA may continuously depend on the subsidy provided by National Government to sustain its socialized housing projects, contrary to Section 2 of EO 195."

Source Document