MANILA, Philippines — The Commission on Audit (COA) has flagged the Commission on Higher Education (CHED) over its failure to implement P1.96 billion worth of projects under the Smart Campus Development Program (SCDP), which aims to equip state universities and colleges (SUCs) with the necessary technology for the implementation of flexible learning modalities amid the COVID-19 pandemic.
In its 2021 annual audit report on CHED, the COA noted that of the P3-billion fund allotted by Congress to CHED under Republic Act 11494 or the Bayanihan to Recover as One Act (Bayanihan 2) for the SCDP’s implementation, P1.958 billion remained unexpended until the lapse of the extended availability of RA 11494 appropriations on June 30 last year.
Based on CHED’s guidelines for the implementation of the SCDP, P2 billion shall be used for financial assistance to SUCs for the acquisition of information and communications technology (ICT) infrastructure and learning management system (LMS) while P1 billion shall be used for the procurement of 20,000 laptops for faculty members of SUCs.
“The CHED-CO (Central Office) and the 89 SUCs were not able to implement the Smart Campus Development Program within the extended validity period of the appropriation for Bayanihan 2 as of June 30, 2021, primarily due to lengthy period of time spent on the selection and approval of the project proposals,” the COA said.
“Hence depriving SUCs in the development/upgrading of their ICT equipment and capabilities toward a smart campus,” it added.
The COA noted that from the CHED-CO’s receipt of 238 project proposals from 100 SUCs nationwide from Nov. 17 to 20, 2020, it took the agency around six months to come up with its list of approved projects involving 89 SUCs on June 7 last year or just 23 days before the lapse of Bayanihan 2.
“Although it is crucial that a thorough vetting process is conducted to ensure that appropriate and priority projects are funded by the Smart Campus Development Program, CHED should recognize, however, that there is a limited period of time within which the program could be implemented considering that it was meant to be a pandemic response,” the audit body said.
It noted that funds were eventually transferred to SUCs, but only on June 22, 23 and 28 last year, “thus, giving SUCs a very limited period of time to proceed with their procurement activities and disburse the funds.”
In fact, 50 SUCs that responded to the inquiry of the audit team admitted that they cannot complete their procurement even as of Dec. 10 last year, according to the COA.
Furthermore, the audit body disclosed that despite the lapse of the budget appropriation under the Bayanihan 2, CHED has yet to revert to the national treasury the P1.958 billion unexpended funds representing the unimplemented projects under the SCDP.
“Thus, in the absence of a legislative enactment further extending the validity of appropriations of Bayanihan 2 funds, the unexpended balances of fund transfers to SUCs, albeit they are obligated, should be reverted to the national treasury,” the COA said.
Based on the audit report, among the key components of the SCDP, which CHED failed to implement, was the procurement of the 20,000 mid-range laptops with a budget of P1 billion intended for faculty members of SUCs.
The COA attributed the non-implementation of the planned laptop procurement to “poor/deficient procurement planning on the part of CHED” as well as “non-compliance and/or incomplete compliance by both CHED and the Department of Budget and Management (DBM)-Procurement Service on their agreed obligations in the contract.”
In a reply, CHED maintained that it was able to disburse the SCDP funds within the validity period provided under RA 11519, or the law extending the availability of Bayanihan 2 appropriations until June 30 last year.
As to the recommendation of the COA to instruct the 89 SUC beneficiaries to revert to the national treasury the unspent funds that they received, CHED said this is “no longer tenable based on the situation on the ground because the SUCs had already proceeded with the procurement, and, in fact, majority of them had already finalized their procurement process.”
In a rejoinder, the COA maintained that under RA 11519, any unused or unexpended appropriation under Bayanihan 2 shall be reverted to the national treasury.
It added that CHED must instead “manifest an appeal with the Congress and the DBM for the possible reappropriation of the subject funds.”