COA: Mandaue City should return P11M unused PDAF

CEBU, Philippines - The Commission on Audit has asked the Mandaue City to return an unutilized Priority Development Assistance Funds totaling P10.8 million to the Department of Finance.

Audit of the city’s dues to national government agencies account revealed that the amount, which came from a donated 2012 PDAF, was neither utilized nor returned to the source agency, as provided for under COA Circular 94-013, which required unutilized or excess funds to be returned by the implementing agency after the project or activity is completed.

COA said these unutilized or excess PDAF should now be back with the DoF as required under COA Memorandum dated March 26, 2014, pursuant to the November 19, 2013 Supreme Court decision declaring PDAF unconstitutional.

COA further found unutilized funds amounting to P31 million (of which P4.3 million is PDAF) for 164 projects and activities outstanding in the city’s books for over two to 10 years. This, COA said, denies the agencies concerned the information on the status of the fund’s utilization.

“With the non-submission of the utilization reports and the non-return of excess funds to the source agencies, Mandaue City have denied the government agencies concerned the information on the status of the utilization of those financial assistance; and the use of any excess funds thereof which could have allowed the source agencies to grant these funds to government agencies which have better use of it,” read the audit report.

Further, COA said the non-utilization of the financial assistance granted to the city for the implementation of certain programs, projects and activities had denied its own constituents the benefits that could have been derived from it.

The Finance Committee is now coordinating with the city’s accounting and other offices so appropriate action would be made.

The city is also waiting for the implementing regulations from the monitoring national government office for the return of all unutilized PDAF.

COA asked Mayor Jonas Cortes to direct the city treasurer, in coordination with the accounting department, to remit to the DoF the said funds.

It also asked the city to look into each unexpended balance of grants from various national government agencies and other LGUs and to coordinate with the different offices concerned on the status of each programs, projects and activities where there are reported excess funds. This was instructed so appropriate action can be made, as required under COA Circular No. 94-013. (FREEMAN)