De Castro, L. A. (2016). Analysis of LWUA's foreign loan repayments and reconciliation with the Bureau of Treasury (Unpublished master's thesis). Public Management Development Program, Development Academy of the Philippines.

Public Management Development Program Middle Managers Class Batch 9 Thesis (MMC)--Development Academy of the Philippines.

One way of increasing capitalization of an agency to finance its operations is through loans. A Government-Owned and Controlled Corporation (GOCC) like the Local Water Utilities Administration (LWUA) is allowed to avail of loans from domestic, foreign and loans guaranteed by the Government of the Philippines (GOP). Foreign and GOP loans are usually remitted to the Bureau of Treasury (BTr) and it is the BTr who pays the creditors because only the BTr is allowed to transact payment in dollars and other foreign currency such as yen and euro, in big amounts. Normally a borrower is furnished with an amortization schedule in order to prepare a budget and cash to pay the loan obligation. Most often the remittance made by the agency and the amount paid by the BTr differ because of foreign currency exchange fluctuation. In such case, the difference is billed by the BTr to the agency for collection. LWUA has obtained several local, foreign and GOP loans to facilitate financial assistance and loans of Water Districts (WDs). In 2011, COA observed that there were differences in the account balances between LWUA and the Btr. LWUA claimed that there was overpayment in one of the loan packages it has been paying which caused the discrepancy. It was also one of the basis why LWUA was issued an adverse audit opinion by COA with a recommendation that a reconciliation between the accounts of the two agencies be made to settle the differences...