Improved compliance
City implemented 80% of COA recommendations: Auditors
THE COMMISSION on Audit (COA) said that 80% of its recommendations from previous audits of the City Government were already implemented during its audit of the 2018 books.
The comment was part of the 178-page annual audit report (AAR) submitted to the city government in the second quarter this year. The report covered an audit held in the calendar year 2018.
COA auditor Gloria Canete said 28 out of 35 audit recommendations embodied in the 2017 audit were implemented.
Six of the recommendations (or 17.14%) were partially implemented while one recommendation was not implemented. Meanwhile, five recommendations from 2016 were not implemented, as well as one recommendation each from the 2013 and 2014 AAR.
The auditors asked the local government to reconcile the items and the target
date of implementation of city infrastructure.
In 2017, “the City Government of Davao was able to recognize in its books of accounts only 33.7% or equivalent to P1,810,794,659.60 out of its P5,359,631,417.84 worth of public structures, instead of the required 50% or equivalent to P2,679,815,708.92 as supposed to be its implementation target to recognize back to its books of accounts as of 31 December 2017.”
Because of this, “a balance of P869,021,049.32 not yet recognized, contrary to the accounting guidelines on the local road network and other infrastructure assets,” the report said.
Meanwhile, the COA lauded the city’s creation of an inventory committee that conducted a physical count of supplies and materials semi-annually, as well as the submission of regular reports reconciling supplies and supporting documents.
In 2017, the COA doubted around P486.3 million in inventory accounts because there were some “non-existing items” carried into the books despite a lack of support documents such as summaries of supplies and materials issued (SSMIs), the authority to drop from the books, and an incomplete count of inventory items.
The city also implemented three recommendations regarding a Mobile Dental Vehicle donated by the DOH in June 2016 worth P7.9 million. As of 2017, the donation had not yet been entered in the books, which resulted into an understatement of city assets by yearend of 2017.
The city secured a deed of donation from the DOH, counted the properties, and recorded the items into the books. However, according to the report, the city was yet to appraise the donated properties to reflect fair value measurements, according to COA rules.
The COA also required the city government to specify the readiness of items being procured and avoid “generic minutes of the meetings” to promote transparency in the procurement process. This, after some P69.5 billion in infrastructure under the annual development fund in previous audits were tagged as lacking information on the procurement readiness of some items.
In 2017, the COA also noted that a document outlining the investment plans of the local disaster body was submitted late. This led to the commission questioning the validity of around P46 million in disbursements as of November 2017.
The COA said the city has since submitted the Local Disaster Risk Reduction Management Fund. Investment Plan (LDRRMFIP) on time and avoided the use of the fund without necessary support documents. Aside from this, the COA also told the city government to create an inventory committee to count the supplies and properties under the disaster risk reduction and management (DRRM) items.
However, the COA said the city was yet to fully submit an inventory of all donated and procured DRRM items.
The COA also criticized the city for not using funding in 2017 amounting to P64.65 million under the 20% development fund. The City Engineer’s Office reportedly returned funds to the City Planning and Development Office due to “various implementation issues.” The issue has since been resolved, the COA said.
To resolve suspensions at different stages of projects worth a total of around P98.4 million, the city has since completed detailed engineering investigations, surveys and designs; coordinated with the Department of Public Works and Highways; clarified road right of way issues; and reviewed plans and timetables, the COA said.
Funds transferred by Environmental Management Bureau-Department of Environment and Natural Resources to the city amounting to P570,000, which was intended for the establishment of Ecological Solid Waste Management Systems, were not yet implemented despite the lapse of the implementation period, contrary to pertinent provisions of the MOA entered into by both parties, the COA said.
The city has since sought the authority from the EMB to extend the project implementation period and to be authorized to spend the funds beyond the period outlined in the MOA.
The city has also reevaluated the feasibility of a biogas facility fund donation from the Department of Agriculture worth P1.5 million in 2014.
DA Pamana fund usage was also low, at only 2.2% or only around P119.626.40 transferred to the city. This led to the city fast-tracking the implementation of Pamana projects.
The city also made sure, according to the COA, that drug procurement would be improved through the bids and awards committee’s postqualification procedure on the supplier with the lowest bid. The city now also certifies the pharmacist’s certification on expiry dates to be submitted to the General Services Office.
It also reminded its employees to accomplish the proper acknowledgment receipts for purchases.