COA: P293-M PUP funds stashed in bank accounts

MANILA, Philippines - The Polytechnic University of the Philippines (PUP) in Manila has more than P293.563 million in available funds stashed away in bank accounts, the Commission on Audit (COA) said in a 2014 report released yesterday.

School officials deposited the funds, sourced from students’ tuition, in high-yield investments instead of utilizing the money to upgrade the school’s facilities, state auditors said.

The audit team frowned at the practice of keeping the money in bank accounts for periods ranging from 11 months to five years, contrary to the intent of Republic Act 8292 or the Higher Education Modernization Act of 1997.

State auditors said even collected fiduciary fees – such as cultural fee, laboratory fee, library fee, medical and dental fee, information technology development fee and athletic, sports development or athletic competition fee – which are budgeted for specific projects were not spent fully and efficiently.

For 2014, out of the approved budget for fiduciary fees of P38.304 million, the COA report said only P6.542 million or 17 percent was spent, leaving P31.762 million or 83 percent unutilized.

“The very minimal utilization of fiduciary fees year after year was observed. Upon inquiry, the budget director explained that it took a while for the deans of the different colleges to submit a list of projects that would have facilitated utilization of the fiduciary fees. She added that in the past years there were no separate budgetary allocations for fiduciary fees and it was only in 2012 up to present that the same was done,” the audit findings read.

The audit team said the PUP should fasttrack the utilization of the fiduciary fees for their intended purposes and the high-yield investments to modernize the school’s facilities.

“Otherwise consider discontinuing collection of fiduciary fees to ease the financial burden of the students,” the state auditors added.

School officials told COA that they will coordinate with concerned offices to hasten the implementation of projects. 

They said the high-yield investments will be used to set up a financial management information system and to procure and construct a rooftop solar power grid.

The money will also be used to repair and rehabilitate the pylon and main entrance gate, Bulwagang Balagtas, physical education building, high school laboratory building, student center and the ground floor dome of the main academic building, school officials said.