The Commission on Audit (COA) called the attention of the Cebu provincial government over the non-implementation of about P90 million worth of projects.
State auditors also said the Capitol should have returned to the national treasury P6 million in unused funds from completed projects to the source agencies and P83 million worth of Priority Development Assistance Funds (PDAF).
The non-implementation of 64 programs, activities and projects (PAPs) deprived Cebuanos of their benefits, state auditors said in their annual audit report on the provincial government’s 2014 operations.
The projects had a total budget of P90.34 million, which has not been used.
“We recommend that Cebu Province implement the PAPs funded from trust funds as required in the Memorandum of Agreement or Special Allotment Advice so that the purpose of which these funds were granted are achieved, thus, benefiting its constituents,” the COA report said.
In response, Provincial Accountant Marieto Ypil said during the exit conference with COA in February this year that they have prioritized the return of the funds.
State auditors noted that about P6 million in unused funds from completed projects have not been returned to the national government agencies that released them.
UNUSED
The COA report recommended that the provincial treasurer refrain from investing unused trust funds in time deposits and special savings deposits.
COA Circular No. 94-103 provides that funds transferred to local governments should be used only for the intended purpose and that proper accounting and reporting be made on its utilization.
From 2005 to 2014, an unused balance of P90.34 million from 64 various projects was recorded.
During the administration of former governor Gwendolyn Garcia, there were 35 projects spread throughout eight years with an unused balance of P30.29 million.
In 2013 to 2014, 29 projects had an unused balance of P60 million.
The projects that were not implemented include PhilHealth funds per family, rehabilitation of a seaweeds and aqua farm and the establishment of the provincial emergency center under the Department of Health.
PDAF
COA also noted that the Capitol received P83-million PDAF funds from various legislators from 2009 to 2013.
State auditors said these funds remained unobligated and should have been returned to the national treasury after the Supreme Court declared PDAF unconstitutional last November 19, 2013.
Provincial Legal Officer Orvi Ortega, in his legal opinion concurred by Gov. Hilario Davide III, stated that PDAF with a notice of cash allocations (NCA) prior to the decision of the SC may be implemented without reference or qualification as to whether the notices had been obligated or not at the time of the decision’s promulgation.
However, the COA audit team said further review should be made on unused PDAF funds without any obligation.
“We would like to reiterate that PDAF funds which were still unobligated when these were declared unconstitutional by the Supreme Court are to be returned to the National Treasury for these to be reverted to unappropriated surplus of the General Fund of the National Government per COA Memorandum dated August 12, 2014,” auditors said.
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