P16.3M Capitol funds released to NGOs unliquidated — COA

At least P16.3-million funds that the Cebu provincial government transferred to various nongovernment organizations and people’s organizations remain unliquidated, according to the recent report of the Commission on Audit (COA).

COA noted that this cast doubts whether the transferred funds were utilized by the NGOs and POs in accordance with the purpose for which these were given.

COA recommended enforcing Circular No 2007-01 by sending demand letters for the submission of liquidation reports.

COA also observed that P41.7 million from Priority Development Assistance Funds (PDAF) was not utilized and the amount was not remitted back to the national treasury as of December 31 last year.

"We recommend that the Provincial Governor direct the Provincial Treasurer to immediately remit to the National Treasury the unutilized PDAF amounting to P41,737,968.66 pursuant to the aforecited SC decisions (SC-GR 208566, 208493, 209251)," the report stated.

The commission also recommended for Capitol to file a motion for clarification before the Supreme Court to avoid eventual disallowance of the disbursements in question.

It also noted an irregular transaction on the purchase of medical oxygen tanks for Bantayan District Hospital amounting to P629,184 as the supplier is not registered with PhilGEPS and the procurement regulations under the Philippine Procurement Law (RA 9184) were not observed.

COA directed the Bids and Awards Committee (BAC) and the Provincial General Services Office (PGSO) to comply with the law so that the provincial government can avoid making procurement contracts with suppliers or contractors that are not registered with PhilGEPS.

COA also noted that portions of the 2017 financial statement of the Cebu provincial government are "doubtful" and "unreliable."

The report stated that the Property, Plant, and Equipment (PPE) accounts per accounting records and per Report of Physical Count of Property, Plant, and Equipment (RPCPPE) of the Provincial General Services Office (PGSO) remain unreconciled as at the 2017 yearend with a variance of P60 million.

"(This renders) the accuracy of the PPE account balances doubtful," stated the opinion of the auditing team.

PGSO Head Jone Sepe said that the P60 million variance is a positive development as compared to the over P1 billion variance when the National Government Accounting System was first implemented in 2004.

He explained that there are two ways of booking or recording a government PPE. It can be through the accounting office or through the PGSO. The former records the acquisition cost while the latter records the physical presence of an acquisition.

In the process of recording, there is a time difference. He explained that some acquisitions which were recorded first at the Accounting Office through the receipts are yet to be recorded by PGSO in time for the cut-off date.

For years 2004 and beyond, Sepe said that there is zero variance. The existing variance is from the PPE which were acquired before the NGAS.

He recalled that the PGSO warehouse once caught fire and some documents were destroyed.

This is why some PPEs have no accompanying documents and therefore cannot be ascertained if it is indeed the item purchased by the government before.

Cases like these are labeled by PGSO as unidentified.

COA also noted that various asset and liability sub-accounts had negative balances that totaled P112.8 million while unidentified accounts totaled P284.5 million. These figures suggest that the affected accounts are unreliable according to the auditor.