COA: Danao has P6.2M in aid unaccounted for

CEBU, Philippines - The Commission on Audit said that Danao City has a total of P6.2 million in unliquidated financial assistance granted to non-government organizations in 2013.

State auditor Cymbeline Celia Uy, in her annual audit report of the city’s operations in 2013, said the P6.2 million amount has accumulated “due to the failure” of the NGOs to submit documentary requirements, which is “contrary” to COA Circular No. 2007-01.

COA had recommended that the city accountant send demand letters to these NGOs for liquidation, and that city officials “monitor” the release of financial assistance.

This is not the first time that COA had noticed similar discrepancies in the city’s handing of financial assistance for NGOs and people’s organizations.

In 2011, the said agency ordered the city to liquidate P5.6 million in funds transferred to NGOs and POs for the fiscal year 2010.

COA had also asked the city accountant to send demand letters to these groups to give a full accounting with documents on how the funds were used.

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. —BRP (FREEMAN)