Unreliable Collection Efficiency Report and Low Collection Rate
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceNHA's report on how much it collects from borrowers is not accurate, and it only collects 23% of what is owed, which is very low. This is because NHA is not properly monitoring and enforcing rules, and it may keep relying on government subsidies.
Why It Matters
Recommended Actions
No recommendations are available for this finding yet.
Original Audit Finding Excerpt
"The collection efficiency rates reported in the Collection Evaluation Report (CER) could not be relied upon due to improper and incomplete reporting of total amount due and actual collection which may mislead its users. Further, NHA has low collection efficiency of 23 per cent out of the total outstanding receivables for residential and commercial property amounting to P18.308 billion as at December 31, 2022, due to inadequate monitoring and enforcement of sanctions under certain provisions of PD No. 1472, MC Nos. 2596 and 003, Individual Loan Agreement and Conditional Contract to Sell, thereby, NHA may continuously depend on the subsidy provided by National Government to sustain its socialized housing projects, contrary to Section 2 of EO 195."