COA tells San Fernando anew on proper use of calamity funds

CEBU, Philippines - The Commission on Audit (COA) has reminded the municipality of San Fernando on the proper use of its calamity funds, which can only be used for calamity-related expenses, either for preparation or rehabilitation.

A total of P840,000 taken from the budgeted Local Calamity Fund, known as the Local Disaster Risk Reduction and Management Fund (LDRRMF) of the town was utilized in the incurrence of expenditures, which is in violation of the joint circular of the Department of Budget and Management-Department of Interior and Local Government.

Under the circular, it states that the calamity funds may also be used for disaster preparedness, other pre-disaster activities and mitigation measures.

Among other things, the funds may be tapped for medical assistance, death and funeral benefits to the victims of disasters as well as financial assistance and other services for medical, rescue and relief workers who have been tasked to attend to the victims.

Preparation of relocation sites, disaster preparedness training, and other pre-disaster activities may also be funded by the calamity funds.

The calamity funds may also be used to purchase medicines but it cannot be used to purchase motor vehicles, including ambulances.

By verification of the COA, it was found out that San Fernando used the amount for labor payroll-drainage canals in the amount of P130,000 for the month of May 24, June 2, and June 17, and the town also purchased an ambulance for P710,000.

“The Labor for drainage canals and the purchase of motor vehicles, including ambulances are not among the purposes for which the calamity fund may be used,” the report read.

The Local Government Code mandates LGUs to set aside five percent of the estimated revenue from regular sources as annual lump sum appropriations for relief, rehabilitation, reconstruction and other works or services in connection with calamities during the budget year.

However, the funds can be utilized only in the area or portion of the LGU or other areas declared under a state of calamity by the President or the local legislative body.

But COA will not allow the use of calamity funds for the construction of roads or bridges. (FREEMAN)