The government agency (NHA) gave money to local governments (LGUs) for housing projects, but a large amount of that money has not been accounted for or returned. Some of these funds have been outstanding for over 10 years, and even for completed projects, the LGUs have not submitted proper liquidation reports. This makes the agency's financial records inaccurate and raises concerns about whether the money was used for its intended purpose.

Why It Matters

Recommended Actions

• Strictly monitor the completion of project being implemented and require the immediate liquidation of funds received by LGUs to avoid accumulation of unliquidated funds;

Original Audit Finding Excerpt

"Management acknowledged the observation and explained that NHA has strictly adhered to the guidelines set forth in DPWH Bluebook and relevant Department Orders (DOs) in the implementation of the projects, including the provision and conveyance of service vehicles. NHA uses DPWH DO No. 197, series of 2016, Revised Guidelines in the Preparation of the Approved Budget for the Contract, as the basis for ABC preparation. The ABC comprises Direct Costs and Indirect Costs, with equipment rental expenses and the provision of service vehicles included under Direct Cost. The DPWH allows for service vehicles in Program of Works based on their Standard Specifications for Highways, Bridges and Airports (Volume II), and Buildings, Ports and Harbor, Flood Control and Drainage Structures, and Water Supply (Volume III). Also, DPWH DO No. 143, Series of 2017, Revised Standard Pay Item List for Infrastructure Projects, designates Pay Item No. A.1.2 (1-9) – Vehicles for the Engineer-as one of its standard"

Source Document