COA check needed before POs, NGOs get Capitol aid

CEBU, Philippines – The Cebu provincial government will no longer release financial assistance to accredited non-government organizations and private organizations without their audited liquidation reports from the Commission on Audit.

This is among the guidelines imposed by the Capitol after the audit body questioned the release of P7.92 million aid in 2012 and 2013 to a NGO despite its unsettled balance in 2011 amounting to P340,833.

The amount remained unliquidated until now in violation to Section 2 of COA Circular No. 2012-001, which requires NGOs and POs full liquidation of funds.

In its review of the Capitol's financial operations last year, COA found out that the Mandaue Chamber of Commerce and Industry was given additional four fund releases despite its non-liquidation of previous donated funds.

MCCI also has unliquidated fund transfer amounting to P8.3 million out of the total P9.72 million amount granted as reflected in the Capitol's subsidiary ledger for the account due from NGOs and POs.

"The management should refrain from releasing additional funds to NGOs and POs unless previous fund transfers have been fully liquidated," COA said.

The provincial government assured that they will send demand letters to those NGOs and POs with unliquidated funds.  

The liquidation, COA said, should be certified by the head of the agency and COA auditor pursuant to pertinent accounting and auditing regulations under COA Circular No. 2010-001.

COA said the accumulation of unliquidated fund transfers to NGOs and POs over the years shows laxity in the monitoring of said funds and enforcement of the required submission of Fund Utilization Reports from the proponents. 

This is seen to hamper the validation of the expenses incurred for the intended projects, COA added.

COA said the fund utilization report should be certified by the NGO's or PO's accountant and approved by the president together with the inspection report and a certificate of project completion issued by the province's authorized representative and/or list of beneficiaries with their acceptance or acknowledgement of the project, funds, goods and services.

The report must be rendered within 60 days after the completion of the project pursuant to Section 5.4 of the COA Circular No. 2007-001. 

To recall, Capitol also would no longer grant financial assistance to towns and component cities without them complying first with the additional requirements that COA has set. —/RHM (FREEMAN)