ILOILO City – The Commission on Audit (COA) questioned some of the city government’s spending last year. These included the coronavirus disease 2019 (COVID-19) response fund.
The city government was not able to create a special account in the general fund (SAGF) for the Bayanihan Grant to Cities, according to COA’s 2020 Audit Observation (AO) Reports No. 13, “thus making it difficult to monitor the extent of compliance by management with relevant budgetary regulations/limitations.”
This city received P94.642 million from the Bayanihan funds for the procurement of welfare goods, medicines, medical equipment, other machineries, and the rapid deployment module.
State auditors noted that the city’s transactions using the Bayanihan funds “were lumped together with the other transactions of the general fund proper.”
Another AO (No. 14) also showed that the city government had 10 Purchase Orders (POs) with various suppliers through negotiated procurement amounting to P123.072 million.
According to COA, the city government “did not provide a definite timeline for the delivery of the procured items/definite duration of contract…to the disadvantage of city government…”
The amount was spent mostly for food items (over P77 million); P5.3 million of liquid chlorine; and over P36 million in medical supplies.
COA, in AO No. 16, also questioned the check disbursements for financial aid to barangays totaling P35.505 million.
It said these were covered by payrolls instead of disbursement vouchers “hence did not bear the required certifications and approval of authorized officials, rendering the propriety and validity of the amounts disbursed questionable.”
COA discovered, too, that the payroll had check numbers that did not tally with the actual checks issued and lacked supporting documents.
State auditors also reviewed the procurement of various food items for distribution to people affected by the COVID 19 pandemic. Their AO No. 15 noted that the food items amounting to P98.537 million were “erroneously recorded/taken up” as food supplies inventory instead of welfare goods for distribution.
“As a result, the food supplies inventory was overstated by P73.887 million while the welfare goods for distribution was inversely understated by the same amount,” the COA added.
COA (AO No. 17) also pointed out that the payments amounting to P12.313 million made to 4,817 beneficiaries of the city’s COVID-19 “Cash for Work” Program were “not supported with complete documentation rendering the validity of the payments doubtful”.
“No duly verified accomplishment report” was attached, too.
Payment was also made to persons other than the payees without authority, COA discovered.
COA noted that one of the city government’s justifications to the audit team was “heavy rainfall which in turn caused a leak in their office; some of the machine copies of the identifications and authorization letters were drenched and severely damaged.”
In AO No. 18, on the other hand, cash donations of P11.4 million for the city’s program against the pandemic “were not recorded in the proper accounts” and the required records and reports to account for donations in-kind received “were not prepared and submitted”.
This “hindered transparency of and accountability in the use of disaster relief aid/donations,” COA said.
COA, in AO No. 19, also flagged the city’s implementation rate of 7.25 percent or only five completed projects out of 69 identified under the 20 percent development fund.
“We fully agree with the management that the ongoing COVID 19 pandemic has greatly affected the implementation of the programs/projects… however, even before the pandemic, the low implementation rate have been a recurring audit observation,” COA said.
Also, in AO No. 20, COA said the city’s Unexpended Quick Response Fund and Disaster Risk Reduction Management fund of P55.115 million “was not transferred to the Trust Fund books”.
These AOs were just among the 27 AOs issued by COA to the city government.
The city government has 60 days upon receipt of the reports to take remedial measures.
Mayor Jerry Treñas told Panay News these audit observations have already been responded/addressed by the city government./PN
