New Zealand cash grant for PH dairy industry not recorded – COA
MANILA, Philippines – A new Commission on Audit (COA) report showed that the New Zealand government's cash grant to the Philippines' National Dairy Authority (NDA) in 2013 was not reflected in the agency's financial records.
The cash grant, which came from the New Zealand Ministry of Foreign Affairs and Trade (NZMFAT), totaled NZ$3.014 million or P93.638 million.
It was intended for developing a "profitable, equitable, and sustainable Philippine dairy sector" through activities such as improvement of farm management and productivity.
In an audit report released last May 26, COA said the NDA violated Philippine Accounting Standards because it failed to declare the cash grant in its records.
State auditors added that NDA officials did not submit to them the documents related to the cash grant, which is a violation of Section 122 of Presidential Decree No. 1445.
"The project started on August 23, 2013 and will be completed by June 30, 2018. A total of NZ$3.014 or P93.638 million has been transferred by NZMFAT for the project as of December 31, 2015," the COA said.
State auditors also noted that there has been no report on how the funds have been spent, so far.
In September 2015, COA wrote to the NDA, requesting an explanation for the audit findings.
COA said it was told that the NDA was maintaining a separate book of accounts and bank accounts for the project. An independent auditor is also said to be checking the transactions every year.
But COA maintained that the NDA is "subject to audit of the COA," and should present records of all its transactions. – Rappler.com