The COA stated in its report that the city failed to put up adequate control in using its P11.19-million calamity fund that was left with a balance of P2.4-million by end of 2005.
Talisay City had used up over P8 million of its calamity fund but only two percent of this-over P174,000-was spent for an actual calamity, which was the fire that hit Nonoc-San Isidro, while the bulk of the money was spent for disaster preparedness programs.
Of the amount spent for fire victims, P5480 was used to buy rice and sardines, P77,000 as cash assistance to 12 families, and the rest for meals to indigents that COA even found excessive.
The amount for the four-day meals for fire victims reached P92,400 computed at P300 daily for every family. But COA noted that the cost of P100 per meal from a catering service firm was "excessive" because later on rice and sardines were given to the victims at a total cost of P5480 only.
However, the city spent more on disaster preparedness programs, the biggest of which was the purchase of a wheel excavator at P3.2-million. Another big slice was P865,000 to buy rice that were later distributed to barangays as stocks for disaster.
The city also bought 22 tents amounting to P660,000 that were given to barangays and spent more for pre-disaster training of barangay officials, including over P200,000 for materials and equipment, over P38,000 for training supplies and even P6500 for prizes.
In the attached schedule of expenses, over P300,000 was paid to a catering firm during the course of the training.
Other expenses were P15,000 for fire prevention supplies and an off-course allocation of P1,500 for streamers for the women's month celebration.
COA noted that Talisay had lapses in recording that could have let the city apply procedures to determine if one account is valid or not.
In its recommendation, COA told the city to adopt adequate control in the use of the calamity fund through a city council resolution that would set a particular percentage of allocation to a given program needing the money.
"In this way, the agency can satisfactorily deliver the required services if an actual calamity will occur in a budget year," said COA.
COA further noted lapses in fund assistance and use of materials given to various departments. It said that the city in 2003 had granted P20,000 in fund assistance to each of 16 women's groups for livelihood projects.
A clause in the assistance was that these groups would remit to the city monthly amortization within the next two years but COA found out that no collection was ever made for the city since.
The COA also found that the city granted the assistance to these groups without requiring them to comply first with pre-qualification procedures that set the guidelines for such purpose.
"This showed laxity of the agency officials to install controls in the implementation of the project," COA said, as it recommended to the city to be wary in granting assistance for the good of the public and not just for a selected few.
City legal officer Aurora Econg, during the exit conference with COA, assured the agency that the city would meet these groups to settle the amount due from them.
Moreover, Talisay City has over P3-million outstanding receivables from un-liquidated cash advances several years ago, including the P1.29-million cash assistance for Talisaynons, under the livelihood program of the former mayor, Dehlia Tiu.
Tiu herself has P600,000 in unliquidated intelligence fund, and COA also noted P2-million unliquidated travel allowances last year.
COA also observed that the existence of P69.09 million worth of property, plant and equipment could not be verified due to the absence of accurate inventory in the city records.
Even the land account, amounting to P21.43 million, has no complete schedule to point out the exact location and corresponding amounts.
Some of these properties were found paid but still un-titled because the city treasurer has still the titles, in contradiction to the rules that as Talisay became a city the property custodian should be the general services officer.
COA recommended that the general services officer should create an inventory task force to keep track of the city properties and the utilization of materials given to various departments.
Talisay City's total assets for 2005 amounted to over P642.06 million, the COA meanwhile reported. - Ferliza C. Contratista