The government paid contractors in advance for projects, but the money was not recovered even after the projects were completed or terminated. This happened because final billing documents were missing and inspections were delayed. Some contractors cannot be found anymore, and their performance bonds have expired, so the government may lose this money.

Why It Matters

Recommended Actions

• Require the Regional/Sector/District Managers concerned to facilitate the issuance of Certificates of Completion on completed projects and submit them to the AD so that the payables to the contractors can be recorded, net of advances to be fully recouped;

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 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. The non-recoupment of the advances may result in the loss of government funds since some of the contractors could no longer be located, and the performance securities posted had already expired."

Source Document