CEBU, Philippines – The Commission on Audit has directed Mandaue City government to return the unused Priority Development Assistance Fund amounting P10.8 million to the national coffers, saying it is already illegal to use and control it.
"We reiterate our prior audit recommendation that the city mayor direct the city administrator, the city treasurer, and the accounting department to return to the Department of Finance the unutilized Countrywide Development/Priority Development Funds pursuant to the Supreme Court decision of November 19, 2013 declaring the said funds unconstitutional," said COA.
COA reminded the city of the Supreme Court's ruling in 2013 declaring PDAF yet to be disbursed and those of the previous years as unconstitutional.
It also reminded the city of Section 6.7 of COA Circular No. 94-013 on the Rules and Regulations on the Grant, Utilization and Liquidation of Funds Transferred to Implementing Agencies which provides that “the IA shall return to the source agency any unused balance and refund of disallowance upon completion of the project.”
Based on its audit of the city's transactions last year, some P10.8 million PDAF from 2012 and earlier was not utilized nor returned to the source agency.
COA said this is contrary to COA Circular 94-013, which requires unutilized or excess funds to be returned by the implementing agency to the source after the project or activity is completed.
"It can be gathered that excess and unutilized/unliquidated funds had been outstanding in the books for one year to 10 years. With the non-return of excess funds to the source agencies, Mandaue City has denied the government agencies concerned from the use thereof or its grant to government agencies which have better use of it," COA said.
The city's Public Information Office told The FREEMAN that this matter has already been resolved during the last exit conference with state auditors and city officials. (FREEMAN)