Improper Allocation and Transfer of Calamity Funds
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceThe National Housing Authority transferred P36.185 million in calamity funds to another government agency (DICT) for building reconstruction without proper justification or required documentation, preventing auditors from verifying the validity of the transaction.
Why It Matters
Recommended Actions
- Provide a clear rationale for the fund transfer carried out by the Authority to the DICT, considering contradiction to AO Nos. 3 and 9, as well as HUDCC MC 30-1
Original Audit Finding Excerpt
"The NHA allocated calamity funds to the Department of Information and Communications Technology (DICT) for multiple projects in Marawi City, including the reconstruction of the DICT building, amounting to P36.185 million, casting doubt on the propriety of the fund transfer. Moreover, the NHA did not provide additional documents requested by the COA, hindering the Commission to assess the validity and appropriateness of the transactions associated with the fund."