COA calls out DSWD on P10.8-B unliquidated 4Ps funds

MANILA, Philippines — The Commission on Audit (COA) has called out the Department of Social Welfare and Development (DSWD) over its unliquidated funds totaling P10.851 billion intended for beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps).

Based on COA’s 2018 annual audit report on DSWD, of the total P217.055 billion that the agency had transferred to Land Bank of the Philippines from 2008 to 2018 for over-the-counter (OTC) payments of the beneficiaries of 4Ps, only P206.204 billion has been liquidated by Land Bank as of Dec. 31, 2018, leaving a balance of P10.851 billion.

A breakdown provided in the audit report showed P2.843 billion of the balance represents the unliquidated fund transfers to Land Bank in 2013 (P498.725 million), in 2015 (P907,300), in 2016 (P1.796 billion) and 2017 (P547.387 million). 

“The balance of P2,843,596,519.72 therefore may be considered idle/excess fund, considering that prior years’ allocation may not be used for current payout, hence it is but proper to return the amount to the Bureau of Treasury,” COA said.

On the other hand, the remaining P8.007 billion represents the unliquidated fund transfer for 2018.

COA said the non-liquidation of the funds contravenes the memorandum of agreement (MOA) between the DSWD and Land Bank dated July 14, 2011, which states that Land Bank “shall submit liquidation documents within five working days from the last date of schedule pay-out.”

COA said the non-adherence to the liquidation provision of the MOA “resulted in the accumulation of the balance funds, a portion of which may have become idle funds.”

The audit body directed the DSWD to coordinate with Land Bank to press its conduits to submit the liquidation documents and to return the remaining amounts not released to the beneficiaries.

In a reply incorporated in the report, DSWD said that as of Feb. 28, 2019, the unliquidated fund transfers have been reduced to P5.076 billion, of which P2.307 billion represents past due balance and P2.768 billion for 2018 balance.

Meanwhile, in the same audit report, COA said the DSWD has yet to remit to the Bureau of Treasury (BTr) a total of P11.859 billion refunded by the Land Bank conduits in connection with the unclaimed cash grants of 4Ps beneficiaries.

The COA noted that from 2013 to 2018, the Land Bank conduits refunded the DSWD a total of P12.593 billion for the unclaimed cash grants of the beneficiaries. And yet, as of Dec. 31, 2018, the agency had only returned 5.82 percent or P733.525 million of the refunded amount to the BTr.

COA said DSWD’s failure to remit the amount to BTr violated Section 83 of Republic Act 10964 or the General Appropriations Act of 2018, which states that the “unexpended balances of appropriations... shall be reverted to the General Fund at the end of the validity of appropriations... and shall not thereafter be available for expenditure except by subsequent legislative enactment.”

The audit body said DSWD also violated its own Administrative Order No. 13, series of 2017, which stipulates that “unclaimed Pantawid cash grants for more than two years from reporting date shall be remitted to the BTr.”

“Thus, non-compliance with the above pertinent rules and regulations deprive the government of needed resources to finance other priority projects,” COA said.

COA also reminded DSWD of its recommendation in previous annual audit reports to conduct an overall validation of 4Ps beneficiaries to ensure that only the poorest of the poor benefit from the program.

COA noted that as of end-2018, a total of 521,962 beneficiaries’ accounts have a total balance of P593.526 million which remain idle for 181 days to more than 2,190 days, or for six months to six years upon payout.

“It bears emphasizing that the cash grants are benefits given to the poorest municipalities, homeless and indigenous people whose economic condition is equal to or below the provincial poverty threshold to augment their day-to-day expenses,” COA said.