Disbursement of Asturias development fund “irregular”

CEBU, Philippines - The Commission on Audit (COA) has found irregularity in the disbursement of the 20 percent development fund of the Municipality of Asturias for Suroy Suroy Sugbo expenses.

For calendar year 2012, the municipality appropriated 20 percent of the annual Internal Revenue Allotment (IRA) for the development fund amounting to P13,546,079.30.

The maintenance and other operating expenses is appropriated for repair and maintenance of barangay roads, municipal public buildings, lighting of streets and playgrounds; solid waste management program, agricultural and tourism development.

Under the capital outlay, other appropriations include agricultural development, waterworks system, construction of thee units vermiculture/composting house at sanitary landfill, barangay electrification project, counterpart funding for the restoration of Gabaldon buildings and construction of covered courts.

Review of the municipality’s transactions revealed that actual expenditures of the development fund as of November 2012 were not among those appropriated.

These were utilized for food and mineral water for the Suroy Suroy Sugbo, supplies and food during Binibining Asturias, printing of tarpaulin during trade exhibit in Argao; gasoline, oil and lubricants for various vehicles; and donations amounting to P384,296.25.

COA said that these disbursements are deviation from the Joint Memorandum Circular No. 2011-1 dated April 13, 2011 of the Department of Interior and Local Government (DILG) and the Department of Budget and Management (DBM).

Based on the above-mentioned memorandum, COA said that the foregoing disbursements charged to the development fund did not fall under the allowable projects mentioned, hence, irregular disbursement of public funds.

In a letter dated March 4, 2013, the municipality explained that all the expenses incurred were related in the implementation of development projects, program or activities.

Although most of the expenditures were related to the implementation of the development program and projects, actual scrutiny of the disbursements of COA revealed that said expenses were incurred indirectly or not related to the implementation of the development projects.

The local government of Asturias reportedly assured the Audit Team to follow strictly the provisions of the DBM-DILG Joint Memorandum Circular.

COA recommended that expenses which do not fall within the provisions cited in the memorandum should be charged to the General Fund – Proper account. —(FREEMAN)