NHA gave contractors advance payments totaling P645.285 million but did not recover them even after projects were completed or terminated. This could lead to loss of government money because some contractors cannot be found and their performance bonds have expired.

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

"Agency Action Plan Reason for 7 Partial/Delay/ Ref. Audit Observations Audit Recommendations | Target Implementation Status of Non- Action Taken/Action to be Action Plan PersoniDept. Date Implementation Implementation, Taken Responsible From To if applicable CY 2022 NHA did not comply with major a. Reconcile the reported North Sector Implemented AAR stipulations in the MOA with | information from RDSD and Observation | the DPWH, resulting in the | NSO to ensure the reliability of Accounting No. 16, over and under procurement of | the account and fund balances; Department page 179 housing units and a delay in the target relocation project, b. Make the necessary RDSD Implemented contrary to Sections 4(3) and | adjustments to accurately 84(2) of PD No. 1445, Sections | reflect the actual occupied units 1 and 5.1 of COA Circular No. | charged against the Fund; 94-013 dated December 13, 1994. and certain provisions in c. Ensure that the fund tmplemented the MOA between NHA and | balances pe"

Source Document