Negative fund balance for NLEX-SLEX Connector Road Project
National Housing Authority · 2023
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe project to relocate families affected by the NLEX-SLEX road had a negative balance, meaning it spent more than it had, even though only a small portion of the families were moved. This violates financial rules and the agreement with the Department of Public Works and Highways.
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 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."