CoA tags Robredo office for ‘inadequate monitoring’ of P28.2M in local projects
Credit to Author: MA. REINA LEANNE TOLENTINO, TMT| Date: Wed, 12 Jun 2019 08:30:50 +0000
“INADEQUATE monitoring” by the Office of the Vice President (OVP) of funds transferred to some cities and towns in 2018 for its Locally Funded Projects (LFPs) resulted in “deficiencies” by the recipients, state auditors said.
A total of P44.66 million was transferred to 29 Local Government Units (LGUs), based on the Commission on Audit’s (CoA) report on the OVP for 2018.
CoA said that 19 of these LGUs “did not submit the corresponding ORs (Official Receipts) for the amounts received, totaling P28,189,978.64.”
These were the cities of Carcar and Naga, both in Cebu, and the following municipalities: Veruela, Agusan del Sur; Tinambac, Camarines Sur; San Remigio, Cebu; Bato, Catanduanes; Capalonga, Camarines Norte; San Joaquin, Iloilo; Zamboanguita, Negros Oriental; San Francisco, Cebu; Sumilao, Bukidnon; Tampakan, South Cotabato; Siayan, Zamboanga del Norte; South Upi, Maguindanao; Pola, Oriental Mindoro; Pilar, Sorsogon; Tuburan, Cebu; Taft, Eastern Samar; and Piagapo, Lanao del Sur.
Based on the audit report, Article 2.1.3 of the Memorandum of Agreement (MoA) between the OVP and LGUs stated that the LGU shall issue an OR for the amount received from the OVP.
CoA Circular 2012-001 on the Revised Guidelines and Documentary Requirements for Government Transactions requires the source agency to present a copy of the OR while Section 68 of Presidential Decree 1445 (the Government Auditing Code of the Philippines) requires the issuance of OR, based on the audit report.
“Instead of OR, it was noted that only a Certification from the recipient-LGU was given to the OVP, who accepted this Certification, though it was not the documentary requirement prescribed under Item 3.1.1 of CoA Circular 2012-001. Moreover, the OVP did not diligently follow up the submission of ORs, which is imprudent for a Source Agency (SA), whose fund is being disbursed,” CoA said.
“It is of note that the absence of ORs casts doubt on the authenticity of fund transfers to IAs,” it said.
The audit report said that the OVP, in a reply dated April 29, 2019, that it “is in the process of completing the ORs required.”
The OVP also said in part that in the certifications, the LGUs duly acknowledged receipt of funds.
It “plans to send again formal letters to all LGUs reiterating the submission of documentary requirements under the MOA. All ORs and Liquidation Reports will be completed at the soonest possible time,” the audit report said.
The commission said that of the P44.66 million in funds transferred by the OVP for the 29 projects, seven were completed as of yearend 2018, with five more projects completed as of March 25, 2019.
These 12 projects, which amounted to P19.6 million, were: the “2-Classroom Building/Evacuation Center” in Bato, Catanduanes; five multi-purpose patrol boats in Agutaya, Palawan; “100 units 50 watts LED/Streetlights” in Jose Panganiban, Camarines Norte; toilet bowls in San Joaquin, Iloilo; medicine for mentally-challenged persons in Dalaguete, Cebu; cattle fattening in Zamboanguita, Negros Oriental; “Garden Tools/Vegetable Seeds, Carabao, etc.” in Sumilao, Bukidnon; “High School Dormitory; 16-Seater Multicab” in Balangkayan, Eastern Samar; “Psychiatric Acute Care Facility” in San Remigio, Cebu; and “Multi-purpose building/evacuation Center” in Capalonga, Camarines Norte.
“However, as at yearend, and even as at March 25, 2019, no liquidation reports and quarterly reports were submitted to the OVP, or posted on the LGU-implementing agency’s website, as required under Section 90 of the GP of FY (Fiscal Year) 2018 GAA (General Appropriations Act),” CoA said.
It added that Item 2.1.4 of the MoA stated the LGU shall “regularly coordinate with the OVP and submit quarterly Accomplishment Reports…which shall include a Fund Utilization Report; Report of Checks Issued and Report of Disbursements certified correct by the Accountant and approved by the Local Chief Executive and duly received by the Commission on Audit, to be completed not later than Dececmber 31, 2019.”
“Upon verification, both requirements were unheeded by the 29 recipient-LGUs,” CoA said, adding that “[t]he absence of the liquidation reports and quarterly reports cast doubt on the accuracy and regularity of disbursements of the funds.”
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