The agency paid the consultant all the money even though the consultant didn't finish all its required tasks, like getting the design approved, which puts the agency at risk of losing money.

Why It Matters

Recommended Actions

• For subsequent contracts, outline the consultant’s/contractor’s responsibilities in the payment terms of the project’s TOR to prevent paying the contractor/consultant in full before accomplishing all contractual responsibilities.

Original Audit Finding Excerpt

"The oversight of NHA Management to review the report of the consultant and to consider the LGU’s final approval of the design of the NHA Office Tower in the mode of payment of the consultancy contract resulted in the full payment to the contractor despite non-fulfillment of all its contractual responsibilities, thus, increasing NHA’s risk of exposure to financial loss."

Source Document