The collection efficiency report is inaccurate and incomplete, and NHA only collects a small percentage of its outstanding receivables due to poor monitoring and lack of enforcement, which may force reliance on government subsidies.

Why It Matters

Recommended Actions

• Management strictly enforce the provisions of PD No. 1472, MC Nos. 2596 and 003, Individual Loan Agreement and Conditional Contract to Sell to address the increasing number of problem issues and past due accounts.

Original Audit Finding Excerpt

"Ref. Audit Observations Audit Recommendations Agency Action Pian Action Plan Person/Dept. Responsible Target Implementation Date From To Status of Implementation Reason for Partial/Delay/ Non- Implementation, if applicable Action Taken/Action to be Taken CY 2023 AAR Observation No. 27, page 242 The Trust liabilities account included eight non-moving and long outstanding subsidiary accounts amounting P49.735 million as at December 31, 2023 due to non-preparation of SRDs, among others, affecting the fair presentation of the account in the financial statements, contrary to Item 4.9 of COA Circular No. 94- 013. a. Liquidate and/or return the unused fund including the interest thereof to the Source Agency for those trust liability accounts which are nonmoving and had already been completed; and b. Prepare SRDs for ali trust funds particularly those without separate bank accounts and subsidiary records as at December 31, 2023. Accounting Department Reg 3 Not implemented Not"

Source Document