19 NGOs fail to account for P32M in assistance

At least P32 million in financial assistance given to non-government organizations (NGOs) remain unaccounted for.

The Commission on Audit (COA) discovered that the government funds given to 19 Cebu-based NGOs have not been liquidated since 2016.

“The accumulation of unliquidated fund transfers to NGOs over the years indicates laxity in the monitoring of said funds and enforcement of the required Final Fund Utilization Reports from the proponents,” said COA.

COA warned that NGOs who fail to submit liquidation reports of funds granted to them by the Cebu Provincial Government will no longer eligible as beneficiaries for any financial assistance of programs and plans of the province.

The list of NGO names attached in their audit report for 2016 showed that some of the unliquidated balances date back as far as 2005.

The most recent fund transfer was recorded in 2016 wherein the COA found P3 million in unliquidated funds transferred to the Cebu Chamber of Commerce and Industry (CCCI).

In addition, the report showed that the Mandaue Chamber of Commerce and Industry implemented five projects from 2011 to 2015 which have a total unliquidated balance of P8.2 million.

The Ramon Aboitiz Foundation Inc. (RAFI) received a combined sum of P12.3 million from the Capitol as contribution to the Organization for Economic Co-operation and Development (OECD) Urban Green Growth in Dynamic Asia, and for various expenses.

But COA said no liquidation reports were made by RAFI since 2015.

Ramon Dumayac Jr., the provincial government’s chief accountant, in his reply-letter to COA, said only RAFI and CCCI submitted their respective liquidation reports. He added that he will be sending demand letters to NGOs with pending transactions.

COA also said that unliquidated funds amounting to P1 million were transferred to the Cebu Arts Foundation Inc. for organizing the 32nd Cebu Popular Music Festival in 2012.

Other organizations which were part of the said list included Cebeco 1, Cebu Tenpin Bowling Association, Perdido Lex Foundation, Do Kyohan Karate Association Inc., Minglanilla Basketball Association Inc., Boy Scouts of the Philippines – Cebu Council, GABRIELA, Don Bosco Formation Center, Kapwa Ko Mahal Ko Foundation Inc., Cebu Provincial Federation of Senior Citizens Association of the Philippines, Cebu Visitors and Convention Bureau, KKK, Rural Integrated Multi-Purpose, and Legal Alternatives for Women Center.

COA Circular No. 2007 – 001 mandates NGOs, who receive government funds to implement their respective projects, to submit their Final Fund Utilization Report to the government-benefactor, together with supporting documents such as inspection report, certificate of completion with approval by government representatives, and the acceptance of acknowledgment letters from the beneficiaries to prove the completion of any of their government-funded projects.

State auditors also suggested that the provincial accounting office reinforce COA Circular No. 2007 – 001 by sending demand letters to NGOs who still have unsettled accounts, and compel them to submit their Fund Utilization or Liquidation Report before the year ends.

“A periodic report should also be required from the said institutions particularly on grants for projects of continuing or long duration for the audited agency to be periodically informed of the actual status of the projects and utilization of funds,” COA said.