The agency spent money on its emergency housing program without getting the necessary cash allocation from the government's budget department. It used leftover money from previous years without permission, which is against the rules. This caused the agency's accounts to show negative balances, meaning it spent more than it was given. Also, the agency did not prepare a required financial plan for using old funds, which is another violation.

Why It Matters

Recommended Actions

• Provide an explanation and justification for the transactions made without NCA and immediately coordinate with the DBM to secure the required NCA for the obligations incurred;

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