The Commission on Audit (COA) has flagged a total of P37 million in the Catanduanes State University’s procurement of goods and supplies in 2024 for violation of the provisions of Republic Act 9184 or the Government Procurement Reform Act and a related COA circular.
In its Annual Audit Report for the university, the audit team found that 162 procurement of goods totaling P27,028,042.28 and made under the alternative mode for amounts above P50,000 were not supported with copies of PhilGEPS posting of the Contract/Purchase Order and Notice of Award.
The team said that while the Bids and Awards Committee (BAC) Secretary confirmed that they posted Requests for Price Quotations, Contracts and Invitations to Bid for all procurement transactions, they did prepare NOAs and Notices to Proceed (NTPs).
This is contrary to Section 54.3 of the Updated 2016 Revised IRR of RA 9184 and Section 9.2 of COA Circular No. 2012-001, it added.
Noting that the posting to PhilGEPS of the required documents is one of the essential parts of procurement processes, the principle of transparency is not fully attained for lack of such posting, the team stressed.
On the other hand, regular office supplies, materials and equipment amounting to P9,891,703.86 were procured through Small Value Procurement, instead of shopping, in violation of Sections 52.1, 52.2 and 53.9 of the Updated 2016 Revised IRR of RA 9184.
“Examination of the DVs and supporting documents disclosed that the items procured were ordinary and regular office supplies, materials and equipment which are necessary in the day-to-day operation of the university,” the auditors stated. “This is the foremost criteria wherein management should have appropriately considered adopting shopping as the mode of procurement…”
There is a significant difference between shopping and SVP in terms of securing price quotations from prospective suppliers, it added.
The team also noted that in some transactions there was only one price quotation obtained from at least three suppliers, with the BAC proceeding with the evaluation and awarding of contract.
It cited a ruling issued by the Government Procurement Policy Board (GPPB) that a response of “NONE” in the canvass is not considered a price quotation for purposes of the guidelines.
Considering that the procedures in securing price quotations are more comprehensive and extended under shopping, the audit stated, the prices obtained for the procurement of various regular office supplies, materials and equipment through SVP amounting to P9.8 million “may not have been the most advantageous” for the university, it concluded.
On the othad hand, the procurement of various regular office supplies and equipment totaling P356,542.00 were not consolidated, resulting to non-posting of the requests for quotations in PhilGEPS.
3rd VP’s RATA, differential sourced from university funds
The audit team also described as questionable the charging of the Representation and Transportation Allowance (RATA) and salary differential of the third designated Vice President, amounting to P805,548.00, from the university’s appropriation.
Under existing guidelines for SUC Level III, the university is entitled to only two VPs but has three: VP for Administration and Financial Affairs, VP for Academic Affairs and VP for Research, Extension and Production Affairs.
While guidelines allow SUCs to designate additional VPs in excess of the allowable number, subject to the approval of the Governing Board, the same provides that funding shall not be sourced from their appropriations, the COA pointed out.
Delayed release of CHED subsidies to students
The COA also flagged the delay in the distribution of subsidies to students under the Tertiary Education Subsidy (TES) Program for CY 2024 amounting to P9.854,900.00 as well as the delay in the liquidation of these funds with the Commission on Higher Education (CHED).
The subsidies, intended for tuition and other school fees as well as allowance for books, supplies, transportation and personal expenses, provide a maximum of P20,000 per semester to each student-grantee.
Interviews revealed that the delayed release of the funds to CatSU resulted in the delayed release of funds to the students by seven to 72 days from receipt of funds to payout.
The delay in the liquidation of the same funds would also delay the subsequent fund transfers for the same benefits, the audit agency warned.