Unrecouped Advance Payments to Contractors
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe government gave contractors advance payments for projects, but after the projects were finished or stopped, the money was not recovered. This violates the rules and could mean the government loses money because some contractors cannot be found and their performance bonds have expired.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"Advance payments to contractors in an aggregate amount of P152.426 million were not recouped from the contractors, despite the completion and termination of projects as at December 31, 2023, contrary to Paragraph 4.3 of Annex E of the of the RIRR of the RA No. 9184, due to the lack of necessary documents for final billing and delays in conducting final inventory/quantification, final inspection/acceptance, and processing of individual lot titling."