Uta Summary

(Please take note that in the actual conduct of understanding an agency’s profile, information to be
gathered shall be more exhaustive than this sample. Detail of the data presented is limited only to
accommodate the information needed in the Case Study.)
UNDERSTANDING THE AGENCY TEMPLATE

Agency : Housing Development Authority Prepared by : Date :
:
Audit Period CY 2011 Reviewed by Date
: :
:
Office Approved by Date
: :
UTA Summary
Identified Agency Risk Impact on the

UTA Ref.
Risk Title Risk Statement Agency
1. The 70% investible funds
B.  The Authority
to housing may not be
lacks focus on the
Function: attained due to
customer/ public
Investing investments in bonds and
which threatens
Public Service and other marketable
the agency’s
Operations: securities.
capacity to meet
or exceed the
Customer/public
customer’s/
Satisfaction
public’s
expectations.
Strategic:
Resource Allocation 2. Inappropriateness of

resource allocation
process prohibits the
agency’s ability to provide
value for public.
B. Strategic  Increase in past
due restructured
Function: Major initiatives 3. The policy on restructuring
accounts.
may not consider the
-Planning and
capacity to pay of the
Restructuring Execution defaulting borrower/s.
Environment
Dynamics:
Economic changes
4. Economic changes, such
as lower economic growth,
“The information provided for this practice set is intentionally created for the IRRBA workshop
purposes. All transactions are fictitious and do not represent any real life scenario.”
1|Page
UTA Ref.
and opportunities may not
provide a wide range of
services or limit the
availability or quality of
existing services.
5. Housing units financed by

B. Processes: Strategic  Increase of non-
the HDA- may not be
performing loans
Housing Major Initiatives – properly awarded to
and acquired
Program Planning and intended beneficiaries due
assets.
Execution to absence or lack of
proper and appropriate  Inefficient and/or
guidelines in the ineffective
production and award of implementation of
housing units to intended the housing
beneficiaries. program
 Delay of
investment
recovery that may
affect the cash
position of the
Authority
6. Failure to conform to
B. Processes: Operations  Increase in past-
established internal
due accounts of
Housing Public Service procedures or regulations
defaulting
Programs- Operations - on “buy-back” guarantee
borrowers that
Developer Efficiency for loans that defaulted
may affect the
Assisted with within the seasoning
liquidity of the
buy back period of two years by the
Authority.
guarantee developer may result to
non-issuance of notice of  Increase in
“buy-back” within the acquired assets
prescribed period of 15 that cannot be
calendar days from date of easily disposed.
default.  Delay of
investment
recovery that may
affect the liquidity
of the Authority.
B. Processes: Strategic
Housing Planning and 7. Outsourcing activities to third  Inability to obtain
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UTA Ref.
Program- parties may result in the third
Resource allocation - parties not acting within the the optimal level of
Collection
Outsourcing intended limits of their payment received
authority or not performing in from housing loan
Financial
a manner consistent with the beneficiaries
Liquidity and Credit – agency’s strategies and (borrowers).
Credit and objectives.
Collections
8. The unreasonable delay in
the receipt of collections
from borrowers,
Developers, Banks and
other institutions
authorized as collecting
agents on housing loans.
D. Operations  Delays in the
Management: processing of
People – 9. The absence of an
housing loans
Manpower Recruitment and appropriate policy on
especially those
Complement Retention recruitment may result to
that are based on
insufficient number of
percentage of
skilled and qualified
completion.
employees to man critical
positions such as those  Delivery of sub-
performing standard housing
appraisal/inspection of units by
developer’s projects, developers and
acquired assets, collateral approval of
for foreclosure, and housing loans
progress construction of resulting in high
housing units. incidence of
defaulting
accounts.
D. Strategic  Inefficient delivery

Management: of services or risk
Planning and 10. Outsourcing activities to
of asset
Manpower Resource allocation - third parties may result in
misappropriation
Complement Outsourcing the third parties not acting
when contractual
within the intended limits of
employees fail to
their authority or not
do things they
performing in a manner
should do.
consistent with the
objectives and strategies
of the HDA.
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UTA Ref.
E. Operations  The private sector
11. The HDA may fail to
partners may fail
Objectives Public Service & choose the right private
to perform their
and Operations- sector partner.
obligations
Strategies
Partnering resulting in non-
attainment of
objectives of the
housing program.
E.  Low membership
collection will
Objectives Financial reduce the funds
and 12. The HAD may fail to raise
Liquidity and Credit- available for
Strategies appropriate funds to finance
Funding lending purposes.
housing programs.
E. Code of conduct:  Loss of

Stakeholders- government funds.
Third Party Fraud
Developers
13. The risk that the fraudulent
K Recent activities perpetrated by
Development/ employees, agents or
News third-party administrators
against the agency for
personal gain (e.g.
misappropriation of
physical, financial or
information assets) expose
the agency to financial
Compliance loss.
Mandate:
Reputation
14. Damage to the Agency’s

Reputation exposes it to loss
of customer/public trust, profits
and the ability to grow.
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UTA Ref.
15. The Board may adopt The Board of
G. Key Compliance:
policy guidelines not Trustees provides the
Environmental
Governance- aligned with the HDA policy directions
Factors
Board mandate due to political absence of which
Political patronage. impacts the
performance/Agency
management attainment of the
committee agency’s objectives.
i. .
G.Key Compliance: 16. Changing laws may threaten  Policies and

Environmenta HDA’s capacity to operations
Legal-Legal
l Factors consummate important adversely affected
transactions, enforce by changing laws
Legal and
contractual agreements or and regulations.
Regulatory implement specific strategies
and activities.
17. The current IT

ii. Operations:  Unreliable
infrastructure may not
financial and non-
G.Key Information & adequately ensure integrity
financial reports
Environmenta Technology- and confidentiality of data
affect the
l Factors and information as Access
Security/Access decisions of
Risk and Fraud Risk
management.
remain high especially in
Technological the Branches/Regional
Integrity
Offices where the Systems
Administrator as a super-
user has access to all
databases and passwords.
18. Illegal acts committed by
H. Key Compliance:  Loss of
senior management,
Performance government funds.
Code of conduct- division heads or
Indicators
Illegal Acts employees may expose
the agency to fines,
sanctions and loss of
public trust, profits and
reputation and the like.
19. Incomplete, inaccurate

I. Existing Financial:  Unreliable
and/or untimely reporting
Accounting financial and non-
Accounting, of required financial and
Policy financial reports
reporting, and operating information to
affecting the
disclosure other regulatory agencies
decisions of
may expose the agency to
management.
fines, penalties and
sanctions.
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UTA Ref.
20. Over-emphasis on
financial accounting and
other information to
manage the operations
may result in the
manipulation of outcomes
to achieve targets at the
expense of not meeting
public expectation, quality
and efficiency objectives.
21. Terms and conditions of
J. Previous Compliance:
the Memorandum of
Audit
Legal Agreement entered by  Loss of
Findings
HDA with the developers government funds.
may be unfavorable to
HDA and they may fail to
comply with and monitor
contract terms to protect
the HDA from financial
losses.
22. This risk refers to the

K. Analytical Financial-  Reduces
inability to obtain the
Review: investible funds of
Market: optimal level of payment
HDA.
Financial received as a result of a
Credit and
Collections prior agency transaction.
23. Failure to evaluate project

Strategic  Non attainment of
proposals may result in
project’s
Major Initiatives: problems when the project
objectives.
Project Evaluation has been approved.
M.
PAPs
24. The HDA may fail to
Operations  The private sector
choose the right private
partners may fail
Public Service & sector partner.
to perform their
Operations-
obligations
Partnering resulting in non-
6|Page
UTA Ref.
attainment of
objectives of the
housing program.
7|Page

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(Please take note that in the actual conduct of understanding an agency’s profile, information to be

UNDERSTANDING THE AGENCY TEMPLATE

Identified Agency Risk Impact on the

Resource Allocation 2. Inappropriateness of

5. Housing units financed by

D. Strategic  Inefficient delivery

E. Code of conduct:  Loss of

14. Damage to the Agency’s

G.Key Compliance: 16. Changing laws may threaten  Policies and

17. The current IT

19. Incomplete, inaccurate

22. This risk refers to the

23. Failure to evaluate project

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