The joint venture agreement was not properly approved and reported to the necessary government bodies, which is a violation of rules.

Why It Matters

Recommended Actions

• Formally clarify with the NEDA Board and OP whether Presidential approval is required, by disclosing the current status of the JVA and requesting guidance or retroactive approval;

Original Audit Finding Excerpt

"¥. Disclose in the Notes to FS the accrued interest recognized in the books to facilitate sakeholders’ understanding ofthe receivable accounts, vi. Coordinate immediately with the COSDD to enhance the BCS, ensuring the inclusion of controls on all reports needed by the SO/RO/DOs for monitoring purposes and submit these reports to AD for recording, and Image image12.png: d. Require the COSDD to fast-track the enhancement of Billing and Collections System generated Aging Reports and other reports to ensure reliable reporting of financial information and to attain fair presentation inthe FS. For the lapses in the monitoring and recording of PE 7 Perform regular and timely reconciliation between the accounting records and Reports fon the Physical Count of Property, Plant and Equipment/Inventory and Inspection Report of Unserviceable Properties (RPCPPEJIIRUP) in accordance with the relevant COA Circular to promply address any discrepancies; Obtain supporting documents such as Deed of"

Source Document