MANILA, Philippines - The Housing and Urban Development Coordinating Council (HUDCC) is to require various government-owned and controlled corporations (GOCC) and local government units (LGU) to account for over P14.9 million that have remained unliquidated in the last five years.
The Commission on Audit (COA) said funds totaling P14.988 million were transferred to the National Housing Authority (NHA) and various LGUs since late 2005.
Citing COA rules, the a COA report said funds transferred to implementing agencies must be liquidated as soon as the purpose for which it was granted has been served.
State auditors said HUDCC financial reports showed a year-end balance of P4,094,195.76 and P14,810,310 for the account “Due from GOCCs” and “Due from LGUs” as of Dec. 31, 2010.
“Verification and analysis of these accounts disclosed that of these balances, a total of P3,891,459.24 under ‘Due from GOCCs’ was transferred in December 2005 to the NHA for specific undertakings, while P11,096,550 of the ‘Due from LGUs’ pertains to transferred funds to various LGUs from November 2005 to January 2009 for land survey cost in their respective municipalities,” COA said.
The COA report said the HUDCC’s failure to have GOCCs and LGUs liquidate the funds resulted in the overstatement of its receivable account and understatement of corresponding expense account.
“We recommended and management agreed to enforce the liquidation of the funds transferred to the various implementing agencies, to indicate the period of project completion and to require regular submission of status report of fund utilization and other pertinent report, monitoring the status of the project,” COA said.