2024 COA Annual Audit Report:

CatSU neglected P9.4-M Smart Greenhouse; benefits unrealized

THE P9.4-M MULTIFUNCTION SMART GREENHOUSE built during the administration of then Pres. Patrick Alain T. Azanza is seen without its plastic roofing, exposing the facility to the elements. According to school officials, the greenhouse was repaired sometime in April 2025 but at the time this photo was taken, it has apparently remained unutilized as evidenced by the weeds growing with abandon inside the structure.

Damaged by super typhoon “Pepito” in November 2024, the Multifunction Smart Greenhouse constructed two years ago at a cost of P9.4 million was neglected by the Catanduanes State University and its components exposed to deterioration, the Commission on Audit (COA) said in its audit report for said year.

This led to a potential loss of government funds, the audit team stated, adding that the goals and objectives for which it was acquired, the expected benefits for students and faculty of the university and the community farmers, and the commitment of sustainability may not be realized.

The greenhouse was touted as one of the achievements of then President Patrick Alain T. Azanza during for calendar years 2021-2024 before he ran and won as governor.

The project involved a solar-powered, remote-controlled, and online-monitored hydroponic, aquaponics, and aeroponic systems that integrate information technology with agriculture.

In its Executive Summary furnished to the COA, the university said that by embracing technology and integrating it into traditional farming practices, it is “revolutionizing the agricultural sector and preparing students for a prosperous future in the industry.”

The project had the following goals: 1. To equip students with the skills and knowledge required for the modern agricultural environment, granting them a competitive edge in the industry; 2. To motivate faculty members to conduct research and engage with the community, such as upgrading skills in barangays and rolling out municipal agricultural programs; 3. To extend the benefits of Smart Agriculture beyond its graduates, actively contributing to the overall development of the community it serves; and 4. To enhance the income of farmers by modernizing their produce and adopting more efficient farming practices.

Launched on May 25, 2023 with great fanfare and national officials in attendance, the project initially served academic purposes, with students and faculty allowed to gain practical experience and knowledge in advanced agricultural systems.

However, an ocular inspection conducted by the audit team in March 2025 to validate its existence found that while the Multifunction Smart Greenhouse exists, it appeared to have been neglected over time.

“Its current state differed from the original condition of the property when it was opened for public viewing, documented by pictures on file,” the COA stated.

It found that the polyethylene plastic roof covering and accessories were damaged while seven property components were exposed to deterioration, including the metal structure, Skylight AC Automatic Motor Type, upright scroll cover, automatic irrigation system, hydroponic, aeroponic and aquaponic systems.

Two other components – the Environmental Control System and the Smart CCTV – required testing if they were still functional.

On the other hand, two more components – the Smart Digital Control System and the Electrical Works and Solar Hybrid System – likewise needed testing if they were still functional although they were kept inside the Abaca Technology Innovation Center (ATIC) building, the auditors said.

“This means that in barely two years and with the present condition of the property shown by the photos taken by the Audit Team, the University is about to lose (a) large amount of government funds in a remarkable short period of time,” the report stressed.

It noted that no report was furnished to the team of any damage to the Smart Greenhouse caused by any of the typhoons that hit the province in 2023 and 2024.

Granting that any typhoon that hit the province during the period damaged the greenhouse, the management should have addressed the damage to restore the property to a beneficial condition, rather than allowing it to deteriorate, the COA pointed out.

An inquiry disclosed that the management did not clearly identify the responsible official or office for ensuring the maintenance and restoration of the property, although the Certificate of Completion and Turnover was signed by the Dean of the College of Agriculture and Fisheries as end-user of the project.

The COA recommended that an official be assigned to oversee the restoration of the property to its good condition and that the management see to it that the Smart Greenhouse be property managed and utilized in accordance with the purpose for which it was acquired, to avoid wastage of government funds.

In his comment, the then CatSU Officer-in-Charge said that the damage was caused by typhoon “Pepito” on Nov. 16, 2024 despite preemptive measures taken by the university.

In affirming CatSU’s commitment to restore and resume its operations promptly, he bared that repair works were started by the General Services Unit and the CAF on April 8, 2025, focusing on the PE roofing, pump systems, pipe connections, and solar-powered electrical works.

He assured the COA team that despite budget constraints, the greenhouse operations will resume to support student research and the production of high value crops, maximizing the facility’s intended purpose.

P4.25-M in research, extension budgets unutilized

A combined P4.25 million in funding for research and extension services remained unutilized as of yearend 2024, resulting in the loss of exclusive access to these funds for research and extension services, the COA stated, thus limiting the ability to effectively carry out the university’s mandate.

The report disclosed that for CY 2024, the funds utilized under Research Services amounted to P3.73 million, for an overall 83 percent fund utilization out of the total approved budget of nearly P4.48 million.

It also observed that in CY 2023, only 59 percent of the research budget of P5.3 million was utilized.

The audit team verified that of the budget for capital outlay of P771,571.75, only 21 percent was utilized while out of the P2.2 million allotted for honoraria of researchers and lecturers, only 1.5 percent was utilized.

Of the 76 Research Contracts issued by the university in 2024, the report states, only three research projects were fully implemented within the contract duration.

It added that 28 research projects had zero implementation, 32 had low implementation by December 2024 and 13 others had implementation below 50 percent.

The audit team noted that the unobligated research budget was ultimately included in the savings, thus defeating the various purposes for which the mandatory budget of 10 percent of tuition fees allocated for research under Section 8 of CMO No. 20, s. 2011.

In a comment, the Research and Development Services Director explained that the procurement was delayed due to inefficiencies within the acquisition process and the absence of a clear and effective monitoring process.

The official committed to expedite the research process, strictly implement the provisions of the Research Manual and coordinate with the Budget Services Office on the monitoring of research funds.

 

  • to be continued –

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