Lack of allocation in the CY 2023 and 2024 budget prevented the municipal government of Pandan from procuring a power transformer needed for the operation of solid waste management equipment donated by the Department of Environment and Natural Resources nearly three years ago.
A team from the Commission on Audit found out in an ocular inspection on March 19, 2024 that the Biodegradable Waste Shredder (BWS) and Rotary Drum Composter (RDC) remained unutilized in the absence of a 15-KVA transformer at the solid waste processing site.
In their findings contained in the 2023 Annual Audit Report, the team said that the two equipment. Along with a Solar Powered 4G Camera Kit now being used by the engineering office, were part of the SWM equipment donated by the DENR’s Environmental Management Bureau on July 15, 2022 as the latter’s support for the LGU’s development and implementation of local SWM plans and programs.
The LGU’s failure to provide the power transformer, the audit team underscored, is in contravention of the conditions in Memorandum of Agreement signed in April that year that LGU shall ensure the availability of power and infrastructure prior to the installation and delivery of the equipment at the project site.
During the exit conference, the management said that LGU plans to realign items in the 20% Development Fund savings in infrastructure projects for the acquisition of transformer.
On the other hand, the COA noted that 11 out of 29 infrastructure projects funded from the 20% DF with a total contract cost of P6,430,418.60 were not implemented in 2023, delaying expected socio-economic and environmental benefits to constituents.
The unimplemented projects include: Acquisition of Lot (Sanitary Landfill in Tokio (P250,000.00); Rehabilitation of Water System (P3,320,000.00); Maintenance of Day Care Center, Site Development of Resettlement Site, P1,086,718.60; Acquisition of Lot for Water Source of Deep Well, P350,000.00; Improvement of Day Care Center at Balognonan P500,000.00; Acquisition of ROW for Tourism Road in Balognonan P259,050.77.
Advising the implementing office to expedite the procurement, the audit team said the prolonged implementation could bring about the risk of increased project costs due to escalating labor and construction materials cost, potentially exceeding the budget.
Likewise, it flagged registration fees totaling P503,300.00 paid to various government leagues by local elective officials attending meetings, trainings, assemblies and conventions as these were not duly supported by government-prescribed official receipts.
Instead, the report said, the returning officials presented receipts usually used by private institutions bearing the Authority To Print from the Bureau of Internal Revenue, contrary to guidelines.
Cash Advances amounting to P2,843,084.78 also remained unliquidated as of Dec. 31, 2023, the audit team disclosed, with the year-end balances comprising accumulations from prior years and the current year, at P625,274.52 and P2,2317,810.26, respectively.
These amounts remain unliquidated despite the likelihood that the purposes for which these CAs were granted had already been fulfilled, the report stressed.
The team made the following observations: additional CAs were granted without requiring first the settlement of previous outstanding unliquidated CAs; a total of P52,854.28 of the P625,274.52 unliquidated CAs remained outstanding for more than five years; non-compliance with prescribed settlement periods for CAs among accountable officers, employees and SB members; and, the schedule of unliquidated CAs include names of accountable officers who are deceased or have retired from the service.
In the exit conference, the OIC-Municipal Accountant said most of incumbent officials have already liquidated their outstanding cash advances. However, majority of the balance was not settled by persons no longer in service.