COA uncovers anomaly in Bohol town funds disbursed to NGOs

Michael O. Ligalig

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COA uncovers anomaly in Bohol town funds disbursed to NGOs
State auditors say the municipality of Loay accumulated more than P728,000 of unliquidated funds paid out to NGOs

BOHOL, Philippines – The Commission on Audit (COA) found irregularities in funds released by a Bohol town to certain non-government organizations (NGOs) and private organizations (POs) here.

In its latest report, COA said that as of December 31, 2016, the municipality of Loay had accumulated ₱728,500 of unliquidated funds, which had been paid out to NGOs and POs allegedly without a regular and sustained monitoring by the municipal accountant.

Such a practice is similar to the multi-billion-peso pork barrel scam allegedly perpetrated by Janet Lim-Napoles in connivance with some senators and members of the House of Representatives. (READ: Pork Tales: A story of corruption)

State auditors said that in 2014, unliquidated funds amounting to P313,000 were disbursed to NGOs and POs, while the unliquidated funds more than doubled in 2015 at P678,500 for the same purpose.

Specific names of the local NGOs and POs were not divulged in the COA report.

“The above practice understates the expense and overstates the income accounts and possibly exposed unused cash in the hands of concerned LGUs and NGOs/POs to misapplication due to long overdue liquidation/settlement,” COA said in its 2016 report.

Section 5.4 of COA Circular 2007-001 stated that within 60 days after the completion of a project, the recipient NGO or PO shall submit a fund utilization report, certified by its accountant and approved by its president or chairman, together with an inspection report and a certificate of project completion.

The organization’s report should also contain a list of beneficiaries with their “acceptance/acknowledgement of the project/funds/goods/services received,” according to the COA circular.

Meanwhile, the municipal account of Loay explained to COA that the “collection on the repayment of the amount released to various NGOs/POs who availed of the various livelihood assistance was erroneously recorded as service income instead of credit to the above-mentioned account.” – Rappler.com

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