In 2022, the Catanduanes State University spend more than P1.6 million for hotel accommodation as well as meals and snacks served to visitors and those consumed during regular meetings and conferences, which the Commission on Audit described as “excessive and extravagant.”
These expenses, the audit team said, could be dispensed with, pursuant to COA Circular No. 2012-003 and thus may result in wastage of government funds.
Examination of the transactions showed that the non-essential and unnecessary expenditures were for meals, snacks and other related expenses during the conduct of regular or routinary meetings, entertainment of University guests that were on official travel, activities for various programs and other special occasions or those served during the regular course of duty or regular functions.
A breakdown of the disbursements stated that a total of P98,190.00 was used to entertain visitors on official business; P212,799.00 for regular duties, meetings and interview of applicants; P356,523.00 for orientations, lectures, workshops and seminars; P10,538.00 for procurement matters; P306,580.00 for programs and ceremonies; P600.00 for planning activities; P403,747.00 for other activities; and P215,014.71 for hotel accommodation.
Meals and snacks during the conduct of regular meetings can be dispensed with as these meetings and activities are regular functions and responsibilities of the officials and employees, the COA report stressed.
For December 2022, P63,638.00 was paid for meals and snacks for use in the President’s office despite the fact that the disbursements had no attached program of activities or agenda, it said.
From April to June 2022, snacks costing a total of P10,538.00 were served during BAC meetings, with the date of activity different from the date the snacks were served.
Cashier personnel involved in the distribution of the CHED’s Tertiary Education Subsidy (TES) were also served snacks worth P6,100.00 despite claiming overtime pay`.
Heads of offices attending a series of pre-evaluation, panel interviews and final evaluation meetings also ate snacks worth P7,500.00 while P10,297.00 in meals and snacks were served during the 207th Board of Regents special meeting via zoom on March 14 and 17, 2022 despite both activities part of their regular duties and functions.
The same observation was applied to the P7,500.00 in snacks served during meetings at the NSTP and NSRC Office.
During the administrative meeting and Academic Council during the same period, the date of attendance attached to vouchers covering P36,339.00 in meals and snacks was not the same as service delivery, the audit showed.
The team pointed out that snacks for the Aug. 22, 2022 meeting at the VP-REPA office with local agriculturists of the 11 towns for the DA-RRA project should have been charged to the Representation Allowance.
On the other hand, the hotel accommodation of some visitors from government agencies were shouldered by the University and provided with meals and snacks despite the fact that government employees have travel allowances, the COA report said.
“Likewise, simplicity of foods served were not observed and all food and beverages were charged to the government funds,” it noted.
“Food served at the hotel that were shouldered by government funds consisted of lavish menus and drinks such as frappes, latte, alcoholic beverages,” the auditors emphasized. “They are not prohibited from ordering such but the official concerned of the CatSU should have charged it to personal funds.”
Such items can be considered unnecessary and extravagant, and such expenditure is not dictated by the demands of good government, not essential and lavish, they added.
The 2022 audit report showed that the University paid the hotel accommodation of a BOR representative on March 27-28, CHED official and three staff on April 8-9, CHED official and six staff on April 3-7, and seven unidentified persons on April 28-30.
CatSU also shouldered the hotel accommodation and foods of CHED personnel on official business on April 8-9, July 21, and October 2 while they were on official business.
Also tagged as excessive and unnecessary was a disbursement covering P12,250.00 for dinner served to 70 persons “where, in fact, the activity as confirmed from the attendance sheet was from 8 am to 5 pm only,” with the claim without a schedule or program of activities and no separate attendance sheet for the 70-pax dinner.
The audit team also discovered that two restaurants were paid for meals and snacks for the same activity – the April 28, 2022 Technical Budget Hearing – date and attendees.
The payments for P1,603,991.71 for meals and snacks had no information as to what kind of activity was undertaken and without the necessary supporting documents, it said.
“The program of activity, targeted list of participants, notice of meetings, agenda, minutes of meetings and other significant documents to justify the procurement of meals and snacks were not attached, casting doubt on whether the expenses were indeed incurred for official purpose,” the report stressed.
Likewise, there were disbursements wherein the number of food ordered or served were in excess of the number of participants based on the attached attendance sheets, including one dated on Dec, 12, 2022 where snacks for 600 participants were purchased but only 100 signed the attendance sheets.
The COA said that expenses for meals and snacks for entertaining guests or visitors in the normal course of conducting official functions and during ordinary staff meetings or conferences shall be properly charged against personal representation allowances of the official concerned and Representation Expenses, as the allowance is aimed to cover related expenses incidental to and in connection with the actual performance of their respective functions.
In its comment during the exit conference, the CatSU management justified the expenditures by saying that when the university conducts or hosts BOR meetings and conferences, the CHED officials booked their accommodations and the host university will just be billed out.
Both the audit team and the management agreed that on claims for accommodations of visitors from government offices, they will be asked a certification that they did not claim travelling allowances from their mother agency.
The team insisted on its recommendation that the excessive and unnecessary expenditures for meals and snacks should be refunded.