Guiuan complied with disaster fund audit demands – officials

MANILA, Philippines – Municipal officials of typhoon-hit Guiuan town in Eastern Samar said on Thursday, June 25, that had submitted to state auditors documents explaining how its local disaster fund was spent.

They were reacting to a report by the Commission on Audit (COA) dated February 11, 2015, that said Guiuan officials failed to submit monthly documents detailing how it used its Local Disaster Risk Reduction and Management Fund (LDRRMF) in 2014.

“Monthly reports on the receipt and utilization of LDRRMF, disbursement vouchers, official receipts, journal entry vouchers, liquidation reports and required financial reports in relation to LDRRMF for CY 2014 were not submitted by the municipal treasurer and accountant…thus depriving management of timely and relevant audit results to support significant management decisions,” COA said.

Audit rules require local government units to submit monthly reports and supporting documents on how the LDRRMF is used.

Guiuan municipal account Adrian Bernardo told Rappler, however, they had submitted the required documents “last February.” 

“We have complied with the COA’s reporting requirements, including a breakdown of the expenses from our local disaster fund,” he added.

Guiuan Mayor Christopher Sheen Gonzales sent Rappler a certification letter from COA showing that the local government unit had already complied with its reporting requirements for 2014.

This comes after COA sent the municipal government a request letter on December 18, 2014, asking for documents on the monthly reports on the receipt and utilization of the LDRRMF, receipts and donations received in behalf of the victims of Typhoon Yolanda (international name: Haiyan) and Ruby, and photos and documents related to the storage and distribution of goods.

Guiuan, badly hit by Typhoon Yolanda in 2013, had set aside P1.148 million for “disaster preparedness.” The amount comprises 70% of the local government’s LDRRMF, according to the COA report.

Under Republic Act 10121, local government units are required to appropriate 5% of their regular revenues each year to finance the acquisition of emergency response equipment, training of personnel, and purchase of relief goods, among others, as part of its LDRRMF.

Bernardo clarified that the P1.148 million amount for disaster preparedness was unused funds.

Aside from being cleared by COA, Gonzales said the LGU was also recognized by the interior department in 2014 for good financial housekeeping. – Rappler.com