The agency built housing for military officers but didn't record the assets or collect rent, and the agreement was not followed, so it's like giving away the houses.

Why It Matters

Recommended Actions

• Coordinate with the National Agency to establish an agreement and settle terms of payment and provide justification for project cost exceeding the allowable cost set under DHSUD/NEDA Joint MC No. 2023-003

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