LGU told to update books on P875-K unliquidated funds

THE COMMISSION on Audit asked the city government for an update of almost P900,000 in unliquidated funds transferred to non-government offices and people’s organizations.

This, despite an audit rule requiring local governments to liquidate funds up to a certain time, in accordance with Sec/ 5.4 of COA Circular 2007-001.

The COA said that the local government has not yet liquidated P875,000 in transferred funds.

COA Circular 2007-001 dated Oct. 25, 2007 requires local governments to submit the final fund utilization report as well as supporting documents such as the list of beneficiaries, and the use of the funds within 60 days.

Some of the funds had reached three years without liquidation.

The COA recommended to the City Accounting Office and the City Mayor’s Office to coordinate and require the NGOs to immediately liquidate the funds. The entities may also be imposed sanctions, according to COA rules.

In a reply-letter dated Feb. 6, 2017, the acting city accountant informed the audit team that they have already sent letters to the concerned NGOs requiring them to immediately liquidate the financial assistance.

Also, the city government said two NGOs already submitted their liquidation while there were also two accounts that were already dropped from the books, according to the COA report.

The local government, according to the COA report, there were some unliquidated funds from the account named “Due from NGOs/POs” under the city government’s specifically subsidiary ledger 139-0001 (Aids to Non-Government Entities) as of Nov. 30, 2016.

Transactions under the said account pertains to funds transferred by the city government to selected NGOs to support the latter’s programs and activities, with the Office of the City Mayor as the coordinating office.

“Our examination showed that funds transferred to nine NGOs/POs totaling to P875,000.00 are still unliquidated despite the lapse of at least three years from the time of transfer,” the COA report said.

Funds donated to the Luna Legal Resource Center for Women and Children, Inc.; Josefa Segovia Foundation, Inc.; Our Lady of Victory Training Center Community-based Play Group Network, Inc.; Healing Hands Center Foundation, Inc.; Padre Pio’s Center for Children, Inc.; and SOS Children’s Village of Davao, Inc. each had unliquidated amounts of P50,000 ranging from funds dated Oct. 22, 2012 to Nov. 25, 2012.

Meanwhile, the city government also had P150,000 donated to the Davao City Chamber of Commerce and Industry, Inc. that was unliquidated.

The largest amount from these items were the funds given to Boystown Davao, Inc., which at the time received P375,000 for the year, the COA report said.

The COA said that the concerned NGOs and people’s organizations confirmed that they did receive the funding as support for their programs.

However, the entities said that the unliquidated funds were due to “deficiencies in the turn-over of documents by the previous program coordinators.”

One of the entities, Luna Legal Resource Center for Women and Children, Inc., was able to submit its liquidation report after receiving word from the COA.

In some cases, the transfer of funds were not covered by memorandums of agreement, contrary to another COA circular.

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