The agency entered into contracts and commitments before receiving funds from the government, causing massive negative fund balances, an allotment overdraft, and leaving several calamity housing projects unfinished due to a lack of money.

Why It Matters

Recommended Actions

• Ensure that all contracts to be awarded to contractors for the proposed housing projects have sufficient funds;

Original Audit Finding Excerpt

"Page 24 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 investigate who profits from the rent they pay; and e. Accelerate the implementation of the plan to rehabilitate the MRBs in order to ensure a safe living environment for the beneficiaries and prevent significant loss of life and property in the event of an earthquake. Not Implemented Aug. 2025 Not Implemented The Management has still taken no action regarding the implementation of the MRB rehabilitation. No. 6 page 131"

Source Document