Many borrower loans have not been paid for over a decade, which makes the financial records unreliable and prevents funds from being reused for housing programs.

Why It Matters

Recommended Actions

• Management strictly enforce the proper turnover of accountabilities to maintain records for verification and validation of dormant accounts, ensure compliance by the responsible units for the periodic reporting of status of each dormant account, regularly coordinate among concerned Department/Offices/Unit on the case encountered for unresolved dormant accounts, and fast track the completion of the documentary requirements for request of authority to write off the dormant accounts.

Original Audit Finding Excerpt

"The Accountant shall: 6.1 Conduct regular and periodic verification, analysis and validation of the existence of the receivables xxx LHP is one of the components of national shelter programs of CISFA. It promotes the equitable distribution of housing benefits across the country. NHA is tasked to implement cost-recoverable socialized housing projects in selected urban and urbanizable areas in all congressional districts where program beneficiaries shall fully repay on an installment basis the financial assistance granted for the purchase of housing units. As at December 31, 2022, the balances of CISFA LR – LGUs and LR – others accounts are P76.229 million and P57.697 million, respectively, with corresponding allowance for impairment amounting to P33.058 million and P16.440 million, respectively. The LR – LGUs account pertains to interest-bearing loans granted to various LGUs that availed the LHP, while the LR – others account pertains to loans granted to various water districts, co"

Source Document