COA FLAGS P 906.5-M ILLEGAL SUBCONTRACTED JOBS OF NPO

The Commission on Audit (COA) has called out the National Printing Office (NPO) for subcontracting the printing requirements of its client agencies totaling P906.5 million.

In its 2020 audit report, the COA said the NPO engaged 14 private printers to undertake the printing requirements of its clients.

State auditors said subcontracting was not allowed under the General Provisions (GP) of General Appropriations Act (GAA) for fiscal year 2020.

Section 22 of the GP of the GAA stated that recognized government printers should undertake the printing requirements themselves and shall not subcontract to other printers.

“Our examination of the documents relative to the printing activities of the NPO disclosed that various printing services contracted by NPO with requisitioning agencies were actually undertaken by private printers,” the COA said.

The COA also pointed out that the contract/agreement or equivalent document that would support the NPO’s obligation to the private printers was not included in the supporting documents.

State auditors ordered the NPO to ensure the completeness of the supporting documents of all disbursements relative to its printing activities.

“The action of the NPO to engage the private printers to undertake the performance of the printing services indicated the NPO’s inability to service the requirements of the client agencies,” the COA said.