COA flags Santander over P307M breeding stocks

This time, the Commission on Audit (COA) is not only ferreting out missing public funds but also livestock bought for P307.8 million for breeding purposes in the southern town of Santander, Cebu.

In a 2020 audit report, COA found several deficiencies in the town’s Physical Count of Property, Plant and Equipment (RPCPPE) report, including the breeding stocks worth P307,924,806.93.

COA said the items in the said report were found to be “unreliable.”

COA has directed the municipal government to submit the RPCPPE and the breeding stock reports.

The audit body said the report was not submitted within the prescribed period, thus, the correctness of the property records of both Accounting Office and Property Unit against actual items on hand and their corresponding values were not ascertained.

It said the RPCPPE shall reflect the total and actual value of the fixed assets owned and shall serve as the basis in determining the accountability and/or responsibility of the local chief executive and the municipal treasurer as far as these assets are concerned.

Property, Plant and

Equipment (PPE) are defined as tangible items that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and are expected to be used during more than one reporting period.

Local government units are required to have a periodic physical count of PPE, which should be done annually and reported on the RPCPPE as of December 31 of each year and submitted to the auditor concerned not later than January 31 of the following year.

This report, COA said, will enable the auditor or any other official concerned to determine and verify the existence, status, condition and location of the said government properties.

“The purpose of inventory-taking is to safeguard the assets of the municipality against losses due to pilferage and other forms of misappropriation, wastage, obsolescence or damage or any unauthorized removal or transfer of assets of the municipality,” COA said.

In response to the audit observation, the municipality said its accountant provided an unnumbered memorandum dated March 09, 2021 duly issued by the municipal mayor directing the Inventory Committee to conduct physical count of all properties and equipment.

It added that the inventory committee undertakes to submit the RPCPPE as soon as possible and that the RPCPPE of previous years were submitted each year only that the date of submission was beyond the deadline.

P15M EMERGENCY PURCHASES

Aside from RPCPPE deficiencies, COA also found out that the contracts worth P15,001,234.20 through emergency procurements under the BayanihanAct did not contain the required warranty clause.

The submitted Omnibus Sworn Statement (OSS) of those projects with approved budget P500,000 did not also contain the required undertakings by the supplier.

“With the absence of the warranty clause and the specific stipulations in the OSS under the Emergency Procurement under the Bayanihan Act, the Municipality had no security and protection from practices of suppliers that may cause them disadvantage,” COA said.

In a written reply submitted on March 12, 2021, the municipal BAC chairperson explained that the procurements were done in exigency of the pandemic.

Because of the need of the LGU to provide its constituents with the basic needs during the pandemic, the BAC chief said, the required documents, as stated in the GPPB Circular 01-2020, were not properly scrutinized and completely attached.

“The LGU procured food and medical supplies without delay to cater to the needs of the constituents and due to stricter quarantine protocols and lockdown, they needed to access goods and supplies because of fear for supply shortage, thus, they missed to scrutinize if the necessary documents were in place,” said the BAC chairman.

But the audit team cited that while they understand the urgency of the situation, the guidelines formulated by authorities should not be disregarded in the disbursements or use of government funds to achieve the required level of accountability and transparency. —