CEBU, Philippines — The Commission on Audit has called out the previous administration of Cebu Provincial Government for lack of transparency in the utilization of donations for the Local Disaster Risk Reduction Fund.
State auditors pointed out the failure of the administration of former Governor Hilario Davide III to comply with the prescribed format of records and reports in COA Circular No. 2014-002.
"As a consequence of inadequate records and improper recording of cash donations, the agency deprived its donors and other concerned stakeholders and the public in general of quality financial reports that provide detailed information on the status of utilization
thereof for each donor per purpose," COA reported.
Donations above P100,000 pesos were supposed to be given separate subsidiary ledgers per donor. However, the Capitol only lumped them into six SL accounts-- STEER-CEBU (UNDP funds), National Government Agencies (NGAs), Other Local Government Units (LGUs) , Other Sources, International Aid and Government-Owned and Controlled Corporations (GOCCs).
"A separate record for each donor per purpose is important especially for funds received from other LGUs since under Section 5.2.3 of COA Circular No. 2012-002, recipient LGUs are required to submit a report on the utilization of funds received to the Grantor LGUs," state auditors stressed.
The audit report further revealed the management's failure to submit a monthly report on the Receipt and Utilization of Cash Donations. Furthermore, before the donated funds could even be utilized, a request must be made filling in the standard Cash Donation and Utilization Request.
The previous administration, however, did not follow this prescribed process and utilized funds without the CDUR.
COA recommended that the provincial government should follow the prescribed construction of their records under COA Circular No. 2014-002, to submit the monthly RUCD report and to comply to the usage of the CDUR. — FPL (FREEMAN)