Danao did not use, return P30M – COA

CEBU, Philippines - The Commission on Audit found P30 million unused funds in Danao City’s 2013 ledgers.

State auditor Cymbeline Celia Uy, who checked the city’s operations for the calendar year 2013, said the amount was from the national government agencies.

Uy, in her annual audit report, said the  city’s constituents were deprived of the benefits that they should have enjoyed from the projects that were supposed to be funded by the P30 million, which is contrary to COA Circular No. 94-013.

COA also revealed that even though the funds were not utilized, the amount was not returned to the source agencies.

The circular states: “Within 10 days after the end of each month or end of the agreed period of the project, the implementing agency shall submit the report of checks issued and the report of disbursement to report the utilization of funds.”

As per COA report, the city had 14 projects that were already completed but had remaining balance of P3.7M that has not been returned to the source agency. The city has also three projects that have not been implemented yet, but were already funded with P2.7 million.

Danao City also received and unutilized P9.9M of Priority Development and Assistance Fund that has yet to be returned to the Bureau of Treasury as the amount was already declared unconstitutional by the Supreme Court, said COA.

“We recommend that the city officials implement the purpose of the financial assistance entrusted to them the earliest possible time so that the intended beneficiaries could maximize the possible positive effects thereof,” reads COA’s report.

COA also recommended that once the projects are implemented and there is an unused financial assistance, the local government unit must liquidate and return it in compliance with the memorandum circular.

Apart from the national agencies, the city also had P3.4 million unutilized financial assistance from the Cebu province.

At least P39 million under the city’s 20 percent Development Fund was also not implemented in 2013.

The city appropriated P58M worth of projects from the Development Fund, but P20 million of this or 35 percent was not implemented, while P19 million from previous years’ appropriation were also not made into projects.

With this, COA asked the city’s bids and awards committee to coordinate with the city planning division to expedite the bidding process after it was found out that the delay was caused by the lack of program of works and bidding. — (FREEMAN)