The agency spent nearly 40 million pesos on a new HR system but failed to plan properly, so the system was never developed, wasting money and leaving old systems unresolved, which violates procurement and accounting laws.

Why It Matters

Recommended Actions

• Carefully create a strategic procurement plan and evaluate future project proposals to ensure that the project would be beneficial to NHA in accordance with the New Government Procurement Act or RA No. 12009

Original Audit Finding Excerpt

"Page 55 of 90 AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION AS AT AUGUST 31, 2025 RESULTS OF COA VALIDATION Ref. (No. in the AAR) Audit Observations Audit Recommendations Agency Action Plan Status of Implementation Reason for Partial/Delay/ Non- Implementation, if applicable Action Taken/Action to be Taken Date of Follow-up Status of Implementation Actual Implementation Date Remarks Action Plan Person/ Department Responsible Target Implementation Date From To From To 23 and 21 including 20 per cent premium totaling P2.358 million as at August 31, 2024, contrary to Section 4.1.b of Commission on Audit (COA) Circular No. 2021-003 dated July 16, 2021 and Sections 7.0 and 11.0 of COA -DBM Joint Circular (JC) No. 2, s. 2020 dated October 20, 2020, and amended Section 11.1 of COA -DBM JC No. 2, s. 2022 dated November 10, 2022. s. 2020, prior to hiring COS lawyers. monitor continuing compliance with COA Circular"

Source Document