COA questions town’s purchase of gadgets

CEBU, Philippines - The Commission on Audit has disallowed the purchase of 25 units of communication gadgets by the municipal government of Moalboal in 2013 for lack of appropriation.

In the verification and post audit of the disbursement vouchers of the municipality from January to September 2013, COA noted that the local chief executive allowed the purchase of 25 units of cellphones and tablets of different brands even if it was not included in the 2013 Annual Budget.

State auditors said the procurement was in violation of Section 305 (a) of RA 7160, otherwise known as the Local Government Code of 1991, which provides that "No money shall be paid out of the local treasury except in pursuance of an appropriation ordinance or law."

The units include four Blackberry 9380 at P11,430 each; three Sony Ericson Xperia at P12,500 each; a Samsung tab GT B3100 at P15,840; a Nokia Lumia 820 at P19,270; an AA black at P699; an IPad at P25,990; 11 Nokia Asha 310 at P4,444 each; a Sony ST 271 at P10,280; and two unstated units worth P14,990 and P14,894 each or a total of P234,067.

 COA also noted that some of the gadgets were purchased individually and were reimbursed by the municipality while some were purchased through shopping.

No copies of acknowledgement receipt for equipment were attached to the disbursement voucher, thus, COA could not determine the actual users of the said equipment.

"We also noted that these cellphones and tablets were highly sophisticated, expensive and some functions are not applicable in the usual day to day office activities," COA's report read.

COA emphasized that the procurement may be considered unnecessary expenditure.

Section 4.0 of COA Circular 85-55A defines unnecessary expenditures as those that are supportive of the implementation of the objectives  and mission of the agency relative to the nature of its operation while Section 5 of the same circular states that extravagant expenditure signifies those incurred without restraint, judiciousness and economy such as luxurious and grossly excessive.

"For tablets, these equipments are not applicable for office use because there are computers and laptops available in the office for everybody's use. Tablets are mostly for personal use," COA said.

During the exit conference, the municipality and concerned head of each division reportedly had no comment and assured COA that they will reply to the audit observation memorandum.

COA recommended that the municipality must adhere strictly to the provisions of the procurement law.— (FREEMAN)