Negative/Abnormal Fund Balance and Borrowing from Corporate Receipts
National Housing Authority · 2022
This summary was generated automatically from the source document and may contain errors. It is not an official interpretation and should not be relied upon as legal guidance. Review the original excerpt and source document to verify before citing or acting on it.
What Happened?
Category: Financial ManagementIssue: Non-complianceThe C5 Northern Link Road Project spent more money than it received, resulting in a massive negative balance and forcing the agency to improperly borrow from its own corporate funds.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"The C5 Northern Link Road Project funded by the DPWH posted a negative/abnormal balance amounting to P1.260 billion as at December 31, 2022, as disbursements totaling P3.035 billion exceeded the initially received amount of P1.775 billion which prompted borrowing from Corporate Receipts, contrary to the provisions of Sections 4(3), 61 and 84(1) of PD No. 1445, Sections 5.1 and 6.1 of COA Circular No. 94-013, and the stipulations in the MOA entered between NHA and DPWH."