The agency gave contractors advance payments, but when projects were terminated, the contractors didn't pay back, and the insurance claims are stuck.

Why It Matters

Recommended Actions

• Take prompt action with the Insurance agencies to recover the advance payment/ mobilization fee made to the contractors

Original Audit Finding Excerpt

"As a rejoinder, we emphasize the provisions under Paragraph 2 of the Special Provisions under the FY 2024 GAA for the NHA, which authorizes the use of subsidies released in prior years to support additional funding needs for existing programs or sub-programs. As stipulated, the NHA must prepare a work and financial plan for such projects, secure an endorsement from its BOD, and submit the endorsed plan to the DBM for approval. In response, the Management submitted to the Audit Team the approval of the corporate budget for CY 2024 and the corresponding BOD approval. Those documents pertain to projects funded by the 2024 subsidy and do not address those financed through previous years' allocations. As stated in the same provision, the BOD endorsement and DBM approval are mandatory steps for utilizing prior-year subsidies. Without the DBM’s authorization, such projects cannot be implemented, as funding remains contingent upon this approval. Thus, the required documentation under Paragr"

Source Document