There were delays in the completion of five projects funded under the 20% Development Fund and 12 development projects were not implemented in current and previous years, depriving constituents of the intended benefits.
Among the unimplemented projects were seven projects under the Solid Waste Management Program worth a total of P4.6 million: Installation of Level 1 Water System with Elevated Tank and Solar Pump, Installation of Power Supply System, Construction of Materials Recovery Facility, Construction of Housing for Waste Processing Equipment, Construction of Multi-Purpose Working Area/Livelihood Center, Establishment of Vermi-Composting Facility, and Construction of Composter.
Two projects were discontinued: the Construction/Rehabilitation of Trails going to Hicming Falls and Construction of Cottages at the same site.
Three others were still being implemented as of last year: Construction of Sewerage Facility at the LGU compound, Installation of Water and Power at the Ibong Sapa Fish Landing, and Rehab/Improvement of Multi-Purpose Building in Magnesia del Norte.
LGU personnel told the audit team that the SWM projects were not implemented due to the delay in the acquisition of lot to be used as ecological park although payment was made in December 2023.
This resulted in idle funds which could have been used to finance other priority programs of the agency whose benefits can be immediately enjoyed by the constituents, the report said.
On the other hand, the contract for MPB repair in Magnesia del Norte was being terminated at the time of the exit conference.
The LGU disclosed that the project was to be done by phase, with the provincial government funding the first phase and the MLGU covering finishing works, windows and doors.
However, it was found out that the works to be performed by the municipality was not feasible as the completed project undertaken by the provincial government did not include the walls.
In another finding, the COA stated that six (6) infrastructure projects totaling P8.7 million and several donated and/or procured SWM equipment were not fully utilized.
These were the construction of Special Waste Containment Building and a similar one for Medical Waste, Housing for Waste Processing Equipment and SWM Processing Center, all at Magnesia del Sur, and the construction of animal shelter and completion of fish landing.
Various SWM equipment such as shredder/pulverizer, mixer, paving brick machine, glass pulverizer, styro plastic densifier, CHB machines, biodegradable waste shredder and rotary drum composter remained unused.
A concerned LGU official explained that the non-utilization of the projects and equipment stemmed from the dumpsite facility’s lack of connection to the electricity grid, as it would require upgrading the existing distribution line from single-phase to three-phase system.
At the time of the exit meeting, the LGU was waiting for the electric cooperative to proceed with the upgrading of the power lines.
As to the animal shelter intended to house stray, lost and abandoned animals, the LGU was not aware of the requirements of the Bureau of Animal Industry in maintaining such a facility, including the need for a veterinarian at the site.
Initially started by the Bureau of Fisheries and Aquatic and Resources (BFAR), the fish landing project was continued by the LGU and completed on Feb. 28, 2023. It remained non-operational due to the lack of coordination between the Municipal Agriculture Office and the BFAR.
The audit team also flagged two projects funded with P1 million under the 20% DF – Livelihood Development Program and Reforestation Project – as the contracts were not covered by prior authorization by the Sangguniang Bayan.
The LGU had already procured ready-to-plant fruit trees and native hardwood treelings totaling P0.99 million while for the livelihood program, it spent P25,239.00 for the broiler meat production.
On the other hand, the audit team discovered that the contract covering the provision of renewable energy-based electrification project in Dugui San Isidro worth P1.6 million reported as 100 percent completed but the COA found out that several work items costing over P32,000.00 under Painting Works were not completed.
Deficiencies with the variation order and time extension were noted in the implementation of the Opening and Concreting of Farm-to-Market Road in Sogod Tibgao, casting doubts on the regularity and propriety of the project, the report said.
Other significant audit findings included the following: unliuidated cash advances for Confidential Funds (CF) amounting to P375,000.00 intended for the conduct of confidential activities for the 4th quarter of 2023;. the charging of utilities consumption cost of the Virac municipal police station and PNP Tourist Information Office totaling P525,393.34 to the LGU’s Annual Budget even without specific appropriation; granting of P168,990l99 to PNP personnel without sufficient legal basis; and non-utilization of a 100KVA generator set worth P1.15 million at the Catanduanes National High School, to be used as standby power, due to the failure to obtain a Permit to Operate from the DENR and accreditation of a designated Pollution Control Officer.
However, the COA commended the management, especially the Municipal Accounting Office, for achieving a 99.95% liquidation rate in the settlement of cash advances totaling P45.31 million for payroll and cash advances to officers and employees.