Cut spending on Suroy: COA

Auditors find it laudable, yet call for ‘more prudence’

COA recommends more prudence in the use of government funds for the SuroySuroy Program, starting with the creation of guidelines on who should qualify to join the tour for free In 2 of 4 Suroy-Suroy trips made last year, there were more non-paying participants than paying ones, audit observation memo states

THE Cebu Provincial Government spent about P7.6 million more than what it directly earned from the SuroySuroy sa Sugbo tourism program last year, said the Commission on Audit (COA).

In an Audit Observation Memorandum it sent to Acting Gov. Agnes Magpale, the COA said that the Capitol spent P11.45 million on “operating costs and related expenses” of four tours organized in 2012.

Its revenues from these tours reached P3.79 million.

“While we agree that the program is a laudable one to promote Cebu Province as a prime tourist destination, the expenses incurred could have been minimized had management exercised more prudence in the disbursement of government funds,” the memo said.

For revenues, the COA con- sidered only the fees participants paid. The review of collections and expenses did not cover the towns and cities visited by the Suroy-Suroy, which may have enjoyed return visits or seen new arrivals referred by

the tour’s participants.

It pointed out that the Capitol spent 201 percent more for the Suroy-Suroy last year than its total revenue collection.

The Province also has P67.5 million in payables for the 26 buses procured in October for tourism program.

The COA said it observed that Capitol officials showed a “lack of prudence in the disbursement of government funds, incurring unnecessary, extravagant, irregular and excessive expenditures.”

Sun.Star Cebu tried to contact suspended Gov. Gwendolyn Garcia and her daughter, lawyer Christina Frasco, but they did not give any statement as of press time.

‘Entourage’

The audit memo carried the signatures of Charlita Leopoldo, State Auditor 5, who served as the supervising auditor and Atty. Eva Cabrera, State Auditor 4, who served as the audit team leader.

It was sent to Magpale’s office on May 16.

The operating costs and other related expenses for the four batches-January, April, June and September-of Suroy-suroy last year were P3,504,592.60 charged to the trust fund and P7,950,472.21 charged to the general fund.

Expenses charged to the trust fund were those used for the paying participants, while the amount taken from the general fund took care of nonpaying participants or entourage.

These non-paying participants included provincial officials, guests, security officers, Sugbo TV, tour guides, media, PGO/ VP/SP Staff, PTO Staff/ OJT and bus/van drivers.

However, the COA observed there were SuroySuroy tours where the number of non-paying guests was more than the number of those who paid.

In June, there were 178 non-paying participants while there were only 122 of the paying participants.

Expenses

In September 2012, there were 172 who belonged to the list of the non-paying, while 108 were on the paying list.

“In June and September, the number of the entourage was more than the number of paying participants,” the AOM read.

COA said “there were no clear criteria as to who can qualify as guests and therefore free of fees in the Suroy-suroy.”

Among of the expenses charged to the general fund were advertising; office supplies, other maintenance and operating expenses; other office supplies; rent; representation; telephone expense-mobile; and travelling expense.

In the January activity, 200 T-shirts, 100 sun visors, 100 umbrellas and 45 polo shirts were given to the non-paying participants which worth P93,200.

At least P235,950 paid for the six aircon buses and P273,740 was spent on the room accommodation of the non-paying.

Their lunch reached P45,000.

Supplies

A total of P504,322 was spent by the Provincial Government in April for the rooms, snacks and meals of non-paying guests, as well as their supplies.

In the Suroy-Suroy tour in June 2010, the Capitol spent P722,109.14 for vehicle rentals, rooms and meals for the 178 non-paying guests.

There were also tour guides who were paid P24,000 even though there were 46 Provincial Tourism staff who joined the event, the COA also reported.

In September, Capitol spent P1,369,679.50 for the same tour expense items.

COA recommended that the management “justify the number of members of the entourage in each Suroy-Suroy, including private individuals arriving as guests.”

The 26 buses, purchased last year, were given to the local government units that won the Expanded Green and Wholesome Environment (eGwen) Our Cebu program.

For Suroy

These were purchased in October for the Suroysuroy activity.

“Based on the number of participants, both paying and non-paying, the 26 buses could be considered as very much in excess,” the audit memo said.

Earlier, the COA, in their reply to Magpale’s inquiry regarding the payment for the buses, said it is up to the acting governor to decide whether to pay or not the supplier of these buses.

Magpale, when she assumed as acting governor last Dec. 19, said she found out that there was no provincial board approval for the buses.

Under section 2 of Presidential Decree 1445, it is the “policy of the State that all resources of the government shall be managed, expended, utilized in accordance with the law and regulations and safeguarded against loss or wastage through illegal or improper disposition.”