LOON, Bohol – The Commission on Audit (COA) has recommended to this town to return the unused/unimplemented Priority Development Assistance Fund (PDAF) to the trustor. The is one of the recommendations COA has acted on after it found that an amount of Php40,784,772.55 from national agencies and PDAF for this town has remained “unused and enexpended” for more than three (3) years.
And this is “contrary to section 122 of the GAAM, volume I and section 4.9 of COA Circular No 94—13,” COA said in its audit findings. “Unexpected balances of cash proceeds of trust receipts not required by law or contractual agreement to be returned to the trustor of or after completion of the project/purpose for which said trusts were received, shall revert to the unappropriated surplus of the general fund.”
The amount of Php2,043,139.51 was unused and unreturned excess of PDAF which were granted way back in 2005 from: Chatto —PhP(66,874.09) granted on Jan. 1, 2005 as beginning balance; DBM-Binay — Php388,765 on Nov. 16, 2009 for Construction/Rehab of Senior Citizen center; DBM–PDAF — Php123,000 on Sept. 30, 2011 for municipal ambulance; DBM-PDAF — Php950,000 on Nov. 21, 2012 for purchase of medicines; Pimentel — Php500,111 on April 19, 2012 (beg, balance); and Zubiri — Php44,500 on Dec. 28, 2010 (no project listed), COA said.
COA said “it is stressed that all financial assistance from national government agencies are granted for a specific purpose wherein the recipient government agencies are bound to implement according to the purpose of the fund.” Non-implementation or unutilized of the fund by the Local government units-beneficiary “for along period of time should have been returned to the trustor.”
It said tha when there’s financial assistance from PDAF or agencies concerned, a memorandum of agreement (MOA) “would be executed between the trustor and the recipient of the fund. The MOA indicates the number of days within which the recipient will implement the intended projects of the fund.
On its part, the management of this town through its municipal account said that most of the trust funds were already used. But “no debits to the account Due the NGAs wer made pending completion of the projects.”
It said that identification of ID accounts “were delayed/postponed due to lack” of accounting personnel. This is not totally disregarded, the management said.
The municipal accountant should give attention to “verification of accounts with beginning balance totaling Php1,196,313.38 and for ID account amounting to Php5,680,620.90” because it remained inactive for more than ten years already, COA said.
COA asked this town to return the unutilized PDAF to the trustor; and ask trustor’s “approval to revert the enexpended balances of the financial assistance to the LGUs unappropriated surplus of the general fund so that these will become a source of fund of the LGU and be available for appropriation in the succeeding budget;” and to indentify and verify ID accounts and make adjustments in the books when needed.
State Auditor V Jose R. Desamparado sent a letter dated to Mayor Lloyd Peter Lopez of this town regarding these audit findings as of December 31, 2013. (rvo)