NHA signed contracts without ensuring money was available, leading to overspending and stopping many projects. This breaks budget rules and risks wasting 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

"Agency Action Plan Reason for Partial/Delay/ Ref. Audit Observations Audit Recommendations Target Implementation Status of Non- Action Taken/Action to be Taken Action Plan Person/Dept. Date Implementation | Implementation, Responsible From To if applicable No. 8424, as amended by RA No. 10963, RA No. 11534, RA No. 7279, and Revenue Regulations No. 11-97, may enables the Bureau of Internai Revenue (BIR) to assess NHA for potential tax obligations, penalties, and surcharges. b. Use the correct income tax return and appropriately report all sources of income as taxable or tax-exempt; c. Obtain CTE from the Bureau of Internal Revenue (BIR) if NHA wants to be fully exempted from tax related to social housing mandate and to address any uncertainties regarding the treatment of withheld taxes; d. Recompute and adjust the relevant accounts for Fines and penalties - Business income (Delinquency interest), Receivables, and Withholding Tax at Source to reflect the corrected balance; and e. En"

Source Document