The Commission on Audit (CoA), the Philippine government's constitutional audit body, has flagged P68.92 billion in unreliable receivables at the National Housing Authority (NHA), the country's lead state housing agency, and reported that more than a quarter of the housing units completed for survivors of Typhoon Yolanda (Haiyan) remained unoccupied more than 12 years after the disaster.

In its 2025 audit report, state auditors said the NHA lacked a formal accounting manual and standardized policies, undermining the reliability of its receivables as of Dec. 31, 2025. Because receivables represent amounts owed to the agency, balances that cannot be verified leave open how much of the NHA's reported assets can actually be collected — a gap that clouds the financial position the agency reports. Auditors also found deficiencies in the management of property and equipment accounts worth P2.95 billion, resulting in material misstatements and balances that lacked supporting documents.

“The status of records of NHA did not permit them to apply alternative audit procedures, [which] prevented them from determining whether adjustments were necessary,” auditors said in the report’s executive summary.

Thousands of Yolanda housing units still vacant

The Yolanda Permanent Housing Project was meant to resettle survivors of Typhoon Yolanda (Haiyan), which struck the central Philippines in November 2013 as one of the strongest tropical cyclones ever recorded. The audit found that 47,139 housing units, or 26.7% of the 176,804 completed units under the Yolanda Permanent Housing Project, remained unoccupied. The NHA had completed 91.04% of its revised target of 194,195 units — a shortfall of 17,391 units even against the adjusted goal — but funding constraints, project suspensions, contract terminations and project realignments delayed implementation, CoA said.

Auditors said poor transportation access, limited livelihood opportunities, inadequate utilities and substandard construction discouraged occupancy and left completed sites deteriorating.

“Moreover, poor transportation access, limited livelihood opportunities, inadequate utilities and substandard construction left many completed sites underutilized and deteriorating,” the commission said.

Weaknesses in collections

CoA also flagged weaknesses in the NHA’s collection system, particularly payments processed through third-party collecting agents. The agency lacked independent system integration and automated validation controls, forcing it to rely on reports from collecting agents and manual reconciliation of payments — meaning the NHA’s records rest on data it cannot verify.

“These limitations, combined with weak enforcement of contractual remittance and penalty provisions, have resulted in uncredited deposits, delayed remittances and uncollected penalties,” auditors said.

North Triangle lease management

The commission also identified deficiencies in the management of the NHA’s North Triangle property in Quezon City, which is leased to the Department of Transportation. Auditors said the agency had failed to renegotiate lease rates promptly using updated market appraisals or zonal valuations, potentially limiting government revenue. Poor coordination also contributed to accumulated receivables, unverified encumbrances on property titles and inadequate monitoring of subleasing agreements and real property tax obligations.

“These conditions significantly constrain NHA’s capacity to safeguard government interests in the North Triangle property, diminish potential revenue streams and heighten legal exposure,” CoA said.

Financial position and unresolved findings

The NHA’s total assets fell to P195.17 billion in 2025, while liabilities rose to P25.8 billion, leaving net equity of P169.37 billion. The P68.92 billion in flagged receivables is equivalent to roughly 35% of that asset base, underscoring how much of the balance sheet auditors could not rely on. National Government subsidies declined to P1.35 billion from P5.53 billion in 2024 — a decline that comes as CoA cited funding constraints among the delays to the Yolanda housing program — contributing to the agency’s P6.28-billion net deficit, according to the audit.

CoA also reported P2.9 billion in audit disallowances and P74 million in unsettled audit suspensions. Of the 231 recommendations in the NHA’s 2024 audit report, only 39 had been implemented, 10 had been closed and 182 remained unimplemented — a follow-through record that will form the backdrop when the 2025 report’s recommendations are pursued.

This article is based on reporting by Pexcel John Bacon, originally published by BusinessWorld: CoA flags P68.9-B accounting gaps, 47,139 vacant NHA housing units.