COA to DOT: Covid no excuse for unutilized funds

DESPITE constant complaints of the low allocation of funds for tourism promotions, the Department of Tourism (DOT) was cited by the Commission on Audit (COA) for not fully utilizing its budget in 2021.

In its latest audit report, the COA noted that only P2.1 billion, or around 75.3 percent, of the DOT’S total budget of P2.79 billion for 2021, was obligated. Of the obligated amount, only 65.5 percent was utilized and disbursed by the government agency, leaving an undisbursed balance of some P724.5 million.

In particular, among the unutilized balances COA pointed out were: the P34.14 million for tourism development planning (48 percent of total); P10.28 million for tourism industry training (41.8 percent); P9.13 million for tourism standards regulation, accreditation and monitoring (30 percent); P147.2 million in market and product development (49.3 percent); and, some P291 million for the branding campaign (67.2 percent). All these were programs by the Dot-office of the Secretary (Osec).

The DOT attributed the underutilization of funds to Covid-19 travel restrictions and community quarantines, reduced expenses due to the use of online platforms, no suppliers for goods/services bidded out, among others.

But COA averred, “[Considering] that the DOT has been operating under the pandemic for two years, the restrictions and new work setup brought by the Covid-19 pandemic should no longer be the main reason for the inability of the Department to maximize the utilization of the budget. The Management should already have addressed these challenges.”

‘Inefficient planning’

THE audit agency added that “the low utilization of funds reflects the inability of the Management to ensure efficient planning, procurement and implementation of the ‘Target Program, Projects and Activities’ for CY [calendar year] 2021.”

Last year, the DOT was allocated a budget of some P3.2 billion, of which total allotments and obligations amounted to P2.79 billion and P2.1 billion, respectively. The unobligated amount at some P688,000 was reverted to the Bureau of Treasury.

Despite the supposed inefficient planning of the DOT, COA said the agency exceeded most of its targets set out in its project accomplishment report. The audit agency observed that the DOT management “set out realistic physical targets within the current absorptive capacity of the agency taking into consideration the prior years’ performance.”

The COA rendered a qualified opinion on the tourism agency’s finances last year, “due to the unsubstantiated financial statements of DOT Regional Office 4-A [Calabarzon] and accounting deficiencies of some [P7.2 million] affecting the reliability of account balances…”

The audit agency also cited lapses in the grant and liquidation of cash advances such as: some P164 million in past-due unsettled cash advances for operating DOT tourism attaché offices abroad; some P9.8 million by the DOT-OSEC and DOT Region 1 (Ilocos); and, P898,366.17 by the Dot-region 13 (Caraga), among others.

Lapses noted in liquidation

THE DOT management was told to exert effort to know the whereabouts of the retired/resigned officials with the unliquidated amounts, return the unused portion of these cash advances, or impose sanctions such as relieving them of their positions in the case of some Tourism Attaches, or have the erring officials refund the amount that was disbursed to them.

Some P3.8 million in expenses made by the DOT-OSEC and regional offices were also found to be irregular, unnecessary and expensive, the largest amount at P53 million attributed to an irregular charging of budget for financial assistance to the Pacific Asia Travel Association.

“The amount was charged against the budget for ‘Traveling Expensesforeign,’ rendering the transaction irregular in nature not being with its intended purpose,” the COA said.

Some P49.2 million in disbursements were also not supported by documents to prove their validity. The largest amount at some P44 million was attributed to the salaries for job order staff at the DOT-OSEC from January to November 2021, which were not supported by daily time records and accomplishment reports.

As of December 31, 2021, the COA reported unsettled disallowances and suspensions amounting to P493.34 million and P4.91 million, respectively.