COA finds fund deficiencies in Poro

CEBU - Illegal increase of allowances for town officials and unpaid loans, among other irregularities, were discovered by the Commission on Audit-7 in Poro, a fourth-class municipality in Camotes Island.

According to COA’s 2007 Annual Audit Report, the appropriations for Representation and Transportation Allowances of town officials worth P270,000 and personal services worth over P5 million were illegal. These increases were said to be granted April and December of last year.

The auditors ruled that the increase in the RATA of town officials violated the budget memorandum circular.

Citing the computation made by the Provincial Budget Office, the commission said that the increase in personal services alone had exceeded the 55 percent limit defined in the said circular.

Upon verification, it was found out that the town released more than P19 million in personal services when the allowable limit was only P14 million.

State auditors criticized town leaders for granting illegal increase in appropriations that resulted in an excess of P251,655 in personal services.

“It was noted that the actual personal services expenditures exceeded the total appropriation per annual and supplemental budget worth P251,655,” the report read.

The auditors said that they had already informed the town government of these fund deficiencies, but it has not released any statement to date.

Auditors also asked Poro town officials to “facilitate a refund of the excess amount” and “refrain from further implementing new representation and traveling allowances.” Otherwise, the excess amount will be charged against the town officials responsible for the release of such amount.

Also, the commission found out that the town granted loans to a fishermen’s group, the Poro Unified Fishermen’s Association Inc., worth P288,266 despite the absence of an agreement for such undertaking.

The municipal government released loans worth P914,966 to townsfolk and another P288,266 to the fishermen’s group last year.

“No data were available on the repayment period and the interest rate of the loan granted. Furthermore, no payment has been made by the association in settlement of its obligation,” auditors pointed out.

The treasurer explained that the fishermen’s group had “difficulty” in settling obligations, citing some glitches in the implementation of the project.

Further, state auditors found out that a loan released last year for Poro hog raisers worth P389,340 remains unpaid.

“Had the town government implemented the release of the loan in accordance with its purpose, maximum benefits could have been attained,” COA-7 stated in its annual report.

“Municipal officials concerned should convene with the beneficiaries and discuss matters to be able to come up with effective measures in enforcing collection of overdue accounts,” auditors added.

State auditors also asked the town accountant to prepare a journal entry for take-up interest due in the book. — Garry B. Lao/MEEV (THE FREEMAN)