COA calls out Cebu town over repeated failure to submit financial documents

CEBU, Philippines – The Commission on Audit (COA) has called out the town government of Cordova in Mactan Island, Cebu, over its repeated failure to submit financial documents.

In a June 13 letter to Cordova Mayor Cesar Suan, state auditor Rhoda Morales said COA had given the town government until February 14, 2023, to submit the documents, but local officials failed to do so even as of the first week of June.

According to COA, this failure violated the Government Auditing Code and prevented the timely audit of Cordova’s accounts, depriving officials of “prompt communication of the audit results.”

Most of the audit findings on Cordova covered the years when former mayor Mary Therese Sitoy-Cho was in office. Cho was unseated in the 2022 elections by Suan.

Marjun Baguio, Cordova’s public information officer, said on Wednesday, July 12, that Suan would issue a statement on Monday, July 17, and disclose details about the local government’s financial transactions.

COA recorded repeated delays by the town government in the submission of reports in the last five years: 77 days delayed in 2018, 272 days delayed in 2019, and 73 days delayed in 2020.

Auditors noted that the submission of documents for 2021 was already 484 days delayed, despite COA’s 2022 management letter.

They warned local officials involved in the delay that, under the Government Auditing Code, the release of their salaries could be automatically suspended until they complied.

During the exit conference earlier this year, however, Cordova officials promised COA that they would submit all financial documents for the 2021 and 2022 audits by March 31, 2023. The town government failed to fulfill its promise, and COA recommended that the salaries of officials responsible for the delay be withheld.

COA also drew the Cordova town government’s attention to the delay in completing 17 projects worth P57.764 million from 2019 to 2021.

The projects were stalled due to issues with lot acquisition, road right-of-way, and absence of electrical connection, among others.

Auditors pointed out that the problem was the lack of “judicious and meticulous planning” before the local government implemented the projects.

COA urged town officials to include only “implementation-ready” projects in their annual investment plan and budget. Auditors said projects with issues should be deferred until they are ready for immediate implementation.

The town government has promised to fast-track the completion of delayed projects.

Auditors also called the local government’s attention to the utilization of its 20% Development Fund.

COA considered the fund’s utilization suboptimal, citing “unobligated allotments” of P43.123 million, which accounted for 97% of the total current appropriation of the fund.

The town government, in response, said measures were already being undertaken to address the issues pointed out by COA.

COA also urged the town government to post information about government projects so that the public would be informed of the details.

Auditors said the officer-in-charge/municipal engineer explained that the projects were installed with signboards, but these were damaged during a typhoon. The COA report referred only to an OIC, who Baguio identified as Engineer Soripo Singculan.

The town government promised COA that signboards with detailed information about government projects would be installed. – Rappler.com