The agency signed contracts for housing projects even though it did not have enough money allocated. This caused a budget shortfall of over 18 billion pesos. Many projects had to be stopped because there was no cash to pay for them, and some contracts were already terminated, wasting time and resources.

Why It Matters

Recommended Actions

• Ensure that all contracts to be awarded to contractors for the proposed housing projects have sufficient funds, pursuant to Item 5.7 of DBM Circular No. 2010-9 dated December 30, 2010, by requiring Certificate of Budget Allocation prior to the awarding of contracts.

Original Audit Finding Excerpt

"35 AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION RESULTS OF COA VALIDATION Ref. Audit Observations Audit Recommendations Agency Action Plan Status of Implementati on Reason for Partial/Delay / Non- Implementation, if applicable Action Taken/Action to be Taken Date of Follow- up Status of Implemen- tation Actual Implementation Date Remarks Action Plan Person /Dept. Responsible Target Implementation Date From To From To electricity supplies prior to the land development and/or housing construction by involving the local water districts and electric cooperatives as parties to the housing contracts with definite duties and obligations stated therein; connection line of COTELCO (electric provider). Beneficiaries will need to apply for their service co"

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