The agency gave contractors advance payments for projects, but after the projects were finished or cancelled, the agency did not get the money back. Some contractors cannot be found, and the insurance bonds have expired, so the agency may lose millions of pesos.

Why It Matters

Recommended Actions

• Require the Regional/Sector/District Managers concerned to facilitate the issuance of Certificates of Completion on completed projects and submit them to the AD so that the payables to the contractors can be recorded, net of advances to be fully recouped;

Original Audit Finding Excerpt

"Ref. Audit Observations Audit Recommendations Agency Action Plan Action Plan Person/Dept. Target Implementation Date Responsible From To Status of implementation Reason for Partial/Delay/ Non- Implementation, if applicable Action Taken/Action to be Taken nature and amount of any adjustments; and COSDD: i. Fast track the enhancement of the BCS on the generation of Aging and other reports that will require reliable financial information/ report to attain fair presentation of the accounts in the FS. CY 2023 AAR Observation No. 3, page 92 Several deficiencies noted on the recording, —_ reporting, reconciliation and monitoring of the status of Property and Equipment (PE) accounts with a consolidated carrying value of P3.810 billion cast doubt as to its accuracy, completeness, and existence, contrary to the relevant provisions of IPSAS 1 and 17, thereby affecting the fair presentation of the financial statements. a. The reliability of Land, Other Land Improvements, Infrast"

Source Document