COA calls out Sandigan over low budget use

The Commission on Audit (COA) has called out the Sandiganbayan over underutilization of its annual budget for maintenance and other operating expenses (MOOE) and capital outlay (CO) since 2019.

In its 2021 annual audit report on the Sandiganbayan, the COA noted that out of a total of P517.698 million appropriated to the Sandiganbayan for its MOOE and CO for 2019 to 2021, only 7.58 percent or P39.254 million was utilized, leaving 92.42 percent or P478.444 million idle.

The COA said this translates to an average yearly utilization rate of just 6.75 percent or P42.264 million.

The COA said that the Sandiganbayan’s low utilization of its budget resulted in “partial attainment of its major programs, activities and projects” contrary to Section 72 of the General Provisions of General Appropriations Act (GAA) of 2021, which states that all government agencies enjoying fiscal autonomy “shall spend what is programmed in their respective appropriations.”

The COA’s breakdown showed that among the Sandiganbayan’s budget appropriations with very low utilization rate were for furniture and fixtures, repairs and maintenance of buildings and structures, buildings and other structures outlay and machinery and equipment outlay that includes procurement of information and communication technology equipment.

“These equipment were very crucial during pandemic time due to work from home status of officials and employees as a result of declared lockdowns or alert level status to minimize if not to eliminate the contagious virus,” the COA said.

“The bulk of uncompleted utilization of its funds focused on the procurement of ICT equipment, that should have brought enhancement to productivity and outputs of employees, better services to clients and attainment of its mandate,” the COA added.

The COA said that while the COVID-19 pandemic may have put on hold the implementation of many programs and activities, the Sandiganbayan’s below par utilization of its funds has been prevalent even before the pandemic.

The COA said this resulted in the likewise “below par” attainment of goals and objectives from which those funds are requested for.

In a comment, the Sandiganbayan Bids and Awards Committee (BAC) and Secretariat recognized the low budget utilization and committed to revisit its procurement processes to ensure efficient and immediate delivery of programs, projects and activities (PPAs).

The COA said the Sandiganbayan also agreed to the audit recommendations to conduct a review of its budget utilization and implement the PPAs as budgeted, as well as to evaluate the existing practices and procedures in the implementation of PPAs to address the accumulation of significant unutilized funds.