Failure to Collect Long-Outstanding Receivables
National Housing Authority · 2024
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What Happened?
Category: Financial ManagementIssue: Non-complianceNHA has not been able to collect over P62 million that is owed to it for many years, some for up to 20 years. This makes it unclear if the money will ever be collected, and it goes against several rules.
Why It Matters
Recommended Actions
- Exhaust all possible remedies to collect the receivables, otherwise file collection suit for accounts which have matured.
Original Audit Finding Excerpt
"NHA failed to collect the long outstanding receivables totaling P62.159 million from borrowers of CISFA Local Housing Program (LHP) ranging from 10 to almost 20 years, rendering the validity of the balances of LR-LGU and LR-others accounts doubtful, contrary to Section 3 of RA No. 7835, Sections 6 and 7 of COA Circular No. 2016-005 dated December 19, 2016, Items 5 and 6.1 of NHA MC No. 2020-060 dated October 16, 2020, and provisions of the MOA."