Financial assistance totaling P783,500.00 given out by the Pandan municipal government to 95 individuals in 2021 has come under scrutiny of the Commission on Audit for lack of documentation.
In its Annual Audit Report for the year, the audit team noted that the disbursements were not supported with certificate of eligibility and other documents and not in conformity with Section 4 of Presidential Decree 1445 and the LGU’s Manual of Operation.
These, it said, cast doubt on the propriety of the disbursements, eligibility of the beneficiaries and reasonableness of the amount given to individual recipients.
The amounts given to recipients needing money for medical, burial, livelihood and financial reasons ranged from P2,500.00 to as much as P10,000.00, with the Marambong Farmers and Fishersfolks Association getting a total of P30,000.00 as financial assistance on May 25, 2021.
It was learned that through Sangguniang Bayan Resolution No. 2021-01-09, the LGU provided an appropriation of P100,000.00 as Assistance to Individuals in Crisis Situations (AICS) and P896,060.00 as Public Assistance Fund (PAF).
Under the Manual of Operation used by the Municipal Social Welfare Development Office (MSWDO), the resident social worker conducts an interview, assessment and evaluation of the client, to determine if he or she is qualified to receive the assistance, after which the social worker subsequently prepares the Certificate of Eligibility to be signed by the social worker and the local chief executive.
Post-audit of disbursements showed that the total amount of P783,500.00 granted to 95 individuals had no attached complete documentation, particularly the Certificate of Eligibility.
“The assessment and evaluation by the MSWD office is an indispensable procedure to determine client’s needs, his/her eligibility to the grant and establish the proportionate and reasonable amount granted to individual recipients,” the COA stated, adding that without the requirements, the LGU had no proof to justify whether the recipients were entitled to receive a reasonable amount as AICS or PAF assistance.
While the MSWDO was not present during the exit conference, she wrote the COA that the transactions cited as “dubious” did not pass through the MSWD Office for assessment and evaluation of client’s needs.
Mayor Honesto Tabligan II explained while the AICS is under the MSWDO, the PAF is under the Office of the Mayor, with the cash assistance given as the need arises and had a broader purpose.
The chief executive, however failed to present any written policy on the PAF and acknowledged its lapses.
The audit team recommended that in the absence of existing guidelines for PAF, the Manual of Operations for AICS should be used by the LGU in granting PAF.
In another significant finding, the team found that disbursement vouchers covering the purchase of multivitamins, medicines and medical supplies worth a total of P219,642.50 lacked the certificate of product registration and certificate of good manufacturing practice from the Food and Drug Administration (FDA).
“There is no reasonable assurance that drugs and medicines procured were obtained from authorized sources, authentic, safe and effective for human consumption,” it added.
The COA also discovered that stale checks totaling P3,096,534.83 remained unadjusted in the books of accounts as of Dec. 31, 2022 contrary to Sec. 59 of the New Government Accounting System (NGAS) Manual for LGUs.
It likewise flagged that procurement of various food items for meals of COVID-19 patients, uniformed personnel, and vaccination team members that did not undergo public bidding or any other mode of procurement, in violation of Sections 10 and 12 of the Revised IRR of RA 9184.
Of the 10 disbursements, only one underwent procurement procedure but the amount was not paid directly to the supplier but was instead reimbursed to a municipal official.
Five other transactions totaling more than P220,000 were paid through checks in the name of officials and employees, contrary to Section 93 of PD 1445 which provides that checks drawn against the LGU checking account shall be made payable either directly to the creditor to whom the money is due or to a disbursing officer for official disbursement.
“This also resulted to the non-withholding of taxes due from these transactions thereby depriving the government of its collection,” the COA emphasized.
The BAC chairman for goods and services told the team that their office did not receive any Purchase Requests regarding the procurement of various food items for meals of COVID-19 patients and other supplies and materials.
While the nutrition officer explained that personal money was used to purchase the food items and reimbursed by the LGU, the mayor said that resorting to bidding at the time was very impractical.
Nevertheless, the auditors stressed that the management could have judiciously planned the COVID-19 response activities and the BAC could have resorted to emergency purchase.
The other findings included: failure to indicate the Approved Budget for the Contract (ABC) in the Request for Quotations (RFQ) used in acquisition of goods and services made through alternative method of procurement; failure to deduct retention money from suppliers of P903,260.00 worth of goods and supplies; non-submission of copy of perfected Purchase Orders within five days upon issuance; incomplete data on Purchase Orders on procurements totaling P821,157.00; and failure to inform the audit team within 24 hours after receiving deliveries of supplies, materials and goods totaling nearly P4 million.