COA: Danao NGOs failed to liquidate P5.6M

CEBU, Philippines - Concerned non-government organizations (NGOs) and people’s organizations (POs) who availed of financial assistance from the Danao City Government are now obliged to liquidate the funds.

The Commission on Audit (COA) has found an unliquidated amount of P5.6 million of funds transferred to NGOs and POs as of December 31, 2010.

COA asked the Danao City Accountant to send demand letters requiring all heads of organizations concerned to render an accounting of the funds transferred to them by submitting fund utilization reports.

Further, COA also told accounting personnel to carefully check if supporting documents are complete in the liquidation reports before recording it as credit to the account due to NGOs/POs.

COA Circular No. 94-013 dated December 13, 1994 which prescribes the rules and regulations on the grant, utilization and liquidation of funds transferred to implementing agencies provides, among others, that the source agency should require the latter to submit reports pertaining to the utilization of the cash transferred for a particular project.

Section 3.10 of COA Circular No. 96-003 dated February 27, 1996 provides that within 60 days after completion of the project, the NGOs/POs shall submit the financial statements duly certified by an independent Certified Public Accountant for projects worth P100,000 or more.

For fund transfers to NGOs/POs subject to liquidation after implementation of various programs or projects, the transaction shall be recorded as due from them upon transfer and credit the same account upon liquidation.

COA’s audit of the accounts “Due from NGOs/Pos” disclosed that certain policies on the liquidation of fund transfers were not observed and complied by some. — (FREEMAN)