COA to Negros Occ execs: Explain ‘irregular’ use of P132M

MANILA, Philippines – The Commission on Audit (COA) has issued 11 notices of suspensions on expenses incurred by the provincial government of Negros Occidental in 2014, totaling P132.58 million ($2.76 million).

In an audit report on the province released on January 11, state auditors said the provincial government charged expenses from lump sum appropriations without prior authority from the Sangguniang Panlalawigan.

The Supreme Court required such prior authorization in its 2008 decision on the case filed by the Cebu provincial board of against former Cebu governor Gwendolyn Garcia.

“The 2014 Annual Budget and Supplemental Budget No. 1 include lump sum appropriations for grants and donations and subsidy to LGUs in the aggregate amount of P133,336,500.00. During the year, expenditures totaling P132,503,269.10 were charged against these appropriations without prior authority from the SP,” the COA pointed out.

Citing the same basis, COA issued Notices of Suspensions Nos. 2014-154-101 to 2014-158-101 and 2014-169-101 to 2014-174-101 against the provincial government’s transactions.

Stop lump sum appropriations

COA also told the provincial government that the suspensions would have been unnecessary if the province stopped the practice of appropriating funds in lump sum amounts.

It recommended a shift to line budgeting “to ensure regularity and transparency in government transactions,” since it shows specific projects funded by budgetary allocations.

Citing a different violation of procurement rules, the COA also issued notices of suspension on the provincial government’s purchase of food supplies and equipment amounting to P32.78 million.

“The procurement of food supplies and equipment for distribution in the form of food assistance, support services and donations are not supported with list of recipients, contrary to Section 4 (6) of PD 1445 thereby, casting doubt on the regularity of transactions,” the audit team noted.

“The practice has been ongoing for quite some time and prior recommendations were still not complied with, thus, there is a possible risk that items procured were not received by the intended beneficiaries,” it added.

In response to the findings, the provincial government agreed to discontinue lump sum appropriations and adopt line budgeting. It also said it will submit the supporting documents for the questioned purchases.

At the same time, it assured the COA that it has activated an “action group” composed of provincial officials that will evaluate transactions and ensure that they are complaint with audit rules so as to prevent suspensions and disallowance in the future. 

Under COA rules, a suspension is a temporary disallowance referring to transactions “which appear illegal/improper/irregular unless satisfactorily explained or justified” by the concerned officials, or until requirements raised during the audit are complied with. – Rappler.com

US$1 = P47.93