Unclear Responsibilities Between Legal and Treasury Departments Over 56 Expropriation Bank Accounts
National Housing Authority · 2024
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What Happened?
Category: Internal ControlsIssue: Non-complianceNHA has 56 bank accounts holding P43.5 million for land expropriation cases. Two departments are not sure who is responsible for monitoring and closing them, so many accounts are left open even after cases are settled. This leaves money sitting idle and violates government rules. Management agreed to fix this by updating case statuses and closing accounts.
Why It Matters
Recommended Actions
- Request from the respective Courts the approval of the transfer/closure of deposits maintained with the private bank for settled expropriation cases
Original Audit Finding Excerpt
"The lack of clear delineation of responsibilities between the Legal and Treasury Departments in managing 56 bank accounts with a private bank related to expropriation cases has resulted in inefficiencies, delays in fund reallocation, and non-compliance with internal control principles, contrary to Section 2 of PD No. 1445 and Paragraph 2.2.1, Chapter 2 of Revised Philippine Government Internal Audit Manual (PGIAM). As at December 31, 2024, 56 bank accounts with a total book balance of P43.509 million are maintained with a private bank, as follows:"