Negative Fund Balance and Violation of MOA for NLEX-SLEX Connector Road Project
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe NHA received money from the DPWH to relocate families affected by a road project, but spent more than the budget and did not relocate most of the families. The project account went into negative balance, and the NHA used the money for other purposes, breaking the agreement.
Why It Matters
Recommended Actions
- Reconcile fund balances of FMD and AD in assessing the availability of fund to avoid fund overdraft
Original Audit Finding Excerpt
"Despite that only 741 Informal Settler Families (ISFs) or 18.53 per cent out of the 4,000 target ISFs were relocated and resettled under the North Luzon Expressway – South Luzon Expressway (NLEX-SLEX) Connector Road Project funded by the DPWH, the fund posted a negative fund balance amounting to P57.175 million as at December 31, 2023, contrary to the provisions of Sections 4(3), 61, 84(1) and 111(2) of PD No. 1445, Sections 1 and 5.1 of COA Circular No. 94-013 dated December 13, 1994, and the stipulations in the Memorandum of Agreement (MOA) entered between NHA and DPWH."