A glimpse of the facade of the Cebu Metropolis Corridor. CDN Digital photograph | Brian J. Ochoa
CEBU CITY, Philippines— Over P114.5 million in fund transfers finished by Cebu Metropolis to numerous non-government organizations (NGOs) and folks’s organizations (POs) since 2009 stay unliquidated, in response to the newest audit report by the Fee on Audit (COA).
The unliquidated funds have translated into monetary mismanagement and lack of accountability inside the metropolis administration, the audit company mentioned.
The COA report, audit commentary memorandum (AOM) No. 2024-011 dated April 2, 2024, outlines that these fund transfers, meant for the implementation of varied applications and tasks, had been discovered to be inconsistent with COA Round No. 2007-001.
This inconsistency has severely affected the reliability of the reported steadiness as of the year-end.
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Among the many NGOs and POs flagged within the report, Alay Lakad Inc. has unliquidated quantities totaling P868,540.80 since 2009, with an extra P500,000.00 remaining unliquidated since 2013.
The Affiliation of Barangay Council (ABC) has unliquidated funds amounting to P7,200,780.95 from 2007 to 2019 and an additional P3,750,000.00 unliquidated since 2022.
The Barangay Councilor’s League has P11,898,331.94 unliquidated from 2014 to 2021 and P2,250,000.00 unliquidated since 2022.
Equally, Lihok Filipina Basis Inc. has P1,520,075.00 unliquidated from 2008 and P353,750.00 since 2009.
The Philippine Councilors’ League has P982,077.31 unliquidated from 2012, with an extra P450,000.00 unliquidated since 2014.
The Sangguniang Kabataan Federation has P1,704,209.82 unliquidated since 2019, with P20,000,000.00 unliquidated since 2022.
The College of Southern Philippines has P356,266.75 unliquidated since 2008, and the Vice Mayor’s League of the Philippines has P200,000.00 unliquidated from 2006, with one other P2,000,000.00 unliquidated since 2022.
Lastly, the Federation of Cebu Metropolis South District Affiliation Inc. has had P212,500.00 unliquidated since 2006, with the identical quantity unliquidated since 2007.
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COA Round No. 2007-001 mandates NGOs and POs to submit a ultimate Fund Utilization Report inside 60 days after mission completion, licensed by their accountant and accredited by their president or chairman. This report should embody an inspection report, a certificates of mission completion, and a listing of beneficiaries.
Nonetheless, the failure to adjust to these necessities has led to a good portion of funds remaining unliquidated.
The audit report reveals that the non-submission of liquidation reviews has severely hampered transparency and accountability.
Roughly 43.65 % or P50,008,674.78 of the entire steadiness remained unliquidated because of the non-submission of liquidation reviews and supporting paperwork.
A portion of those unsubmitted reviews, about 41 % or P20,420,087.94, pertained to fund transfers aged between 9 to 17 years.
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The delays and deficiencies in submitting and processing these reviews have thrown reliability into the query of town’s monetary reporting.
A considerable quantity of P36,899,703.96 price of liquidation reviews was suspended by the pre-audit part because of lacking documentation, with P24,668,466.06 nonetheless present process pre-audit.
To handle these points, the COA has beneficial that town administration evaluate the Memorandum of Settlement to implement actions in opposition to defaulting NGOs and POs, conduct a radical evaluate of excellent balances, and regulate impairment allowances to mirror the precise probability of assortment.
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Moreover, they recommend implementing a one-time cleaning of all dormant accounts and refraining from granting monetary help to NGOs and POs with excellent unliquidated fund transfers.
The Metropolis Accountant’s Workplace (CAO), of their reply dated April 23, 2024, dedicated to related initiatives regarding its Due from Native Authorities Items (LGUs) accounts.
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