Several irregular procurements, including those made without the knowledge of the Bids and Awards Committee (BAC), were discovered by the Commission on Audit (COA) in its review of transactions of the Bagamanoc municipal government in 2025.
The audit also turned up instances of excess payments for travel per diems and registrations, as well as phone loads, to certain local officials.
In the Annual Audit Report for said year, the audit team stated that purchases of goods and services totaling P1,467,998.38 were made directly from suppliers without applying any mode of procurement and without securing the evaluation and approval of all members of the BAC.
These were not in accordance with Sections 10 and 12 of Republic Act 9184, thereby casting doubt on the validity and propriety of the transactions.
The audit disclosed that the procurements were undertaken through direct contracting with suppliers and service providers without prior BAC evaluation and approval.
No BAC resolution was issued or approved by the committee as a whole determining the appropriate mode of procurement, indicating that the BAC did not formally exercise its statutory function to evaluate and recommend the proper procurement method, the report added.
It said that supporting documents attached to the disbursement vouchers consisted only of Sales Invoices or Official Receipts and Inspection and Acceptance Reports certifying receipt of goods or completion of services, while essential procurement documents such as Purchase Request, Purchase Order, or BAC documents covering the procurements were not presented for audit.
A check of the annexes of the audit report showed that majority of the procurements were for meals and snacks, purchase of construction materials, truck rental, office supplies, photo documentation, and rental of tables and chairs, with the biggest payment of P121,923.38 released for pakyaw labor for the construction and rehabilitation of drainage at the town proper on June 23, 2025.
The purchases were made by the previous as well as the current municipal administration, with the municipal accountant informing that a letter dated July 18, 2024 had been sent to the former local chief executive and vice mayor highlighting observations concerning transactions conducted by some departments that did not follow the standard government procurement procedures.
According to the report, the LGU also resorted to Shopping as the mode of procurement in the acquisition of goods and services totaling P5,778,339.12, including hardware materials, automotive supplies, equipment, room accommodations, venue rentals and catering services, which did not meet the criteria for ordinary or regular office supplies.
Likewise, it awarded and paid various procurements of goods in amount exceeding the Approved Budget for the Contract (ABC) indicated in the corresponding PRs by a total of P248,853.78, exposing the transactions to possible audit disallowance.
Another area which came under the auditors’ scrutiny was the grant of cash assistance amounting to P1.77 million charged against the 30% Quick Response Fund (QRF).
The release of the assistance was allegedly deferred due to a scheduled payout of assistance by the Depaetment of Social Welfare and Development (DSWD) and was given in January 2026, two months after the declaration of a State of National Calamity following super typhoon Uwan in November 2025.
The intended beneficiaries were 3,400 families at P1,000 per family, with P500 charged to the QRF and the other half charged to the 70% portion of the LDRRMF intended for post-disaster recovery, the report stated.
While the management cited coordination with the DSWD payout as the basis for deferring distribution, the audit team noted that no sufficient documentation was presented to establish that immediate relief requirements persisted at the time of the January 2026 distribution.
It observed that the assistance was released as a cash advance in December 2025, despite management’s assertion that delays were due to ongoing validation and master listing of beneficiaries.
On the other hand, several deficiencies were seen in the LGU’s donations and financial assistance transactions, exposing government funds to improper disposition and possible misuse, and casting doubt on the validity of the related disbursements.
The COA’s review of the LGU’s 2025 disbursements disclosed that financial assistance under the LGU program Assistance to Individuals in Crisis Situations (AICS), patterned after DSWD’s AICS, was provided for various purposes, including burial, medical, and transportation assistance.
In addition, donation of various goods and materials were extended to the Bureau of Fire Protection (BFP), Philippine National Police (PNP), various public schools, Commission on Elections (COMELEC), Public Attorney’s Office, and barangays.
The team found that there were no clearly defined politics and guidelines governing the grant of financial assistance ranging from P1,000 to P5,000 under the LGU AICS program and, thus, no clear basis for assessing beneficiary eligibility, determining appropriate amount of assistance per type of aid, or prescribing uniform documentary requirements.
In addition, case study reports were not consistently prepared and attached by the OIC-MSWDO to substantiate the indigency and eligibility of beneficiaries, it noted.
On the other hand, the procurement of goods and materials for direct turnover to other agencies did not comply with the proper donation process including enacted resolution of the Sangguniang Bayan authorizing the conveyance of property, and the deed of donation and written acceptance by the recipient agencies.
Instead, the report pointed out, the transactions were supported only with request letters, acknowledgment receipts, and Requisition and Issue Slips (RIS).
It also said that donations of goods and materials to various schools were charged to the General Fund, instead of the Special Education Fund.
In another finding, the municipality granted hazard pay, computed as 20% of the daily rate multiplied by a specified number of days within the month, to the Acting MSWD Officer despite the absence of complete and relevant supporting documentation.
The attached Daily Time Records and accomplishment reports did not specify the exact days for which hazard pay was claimed nor the locations visited that may qualify as hazardous or with dangerous conditions, the audit team said.
“No assignment orders or certifications from the LCE were attached to the DVs to substantiate that the MSWDO was actually assigned to hazardous or difficult areas, which could have exposed her to great danger, occupational risks or difficult areas, as required for the payment of Hazard Allowance,” it emphasized, adding that under these circumstances, the grant of hazard pay constituted irregular expenditure.
The LGU’s grant of P2,000 additional honoraria to the Planning Officer I, designated as Human Resource Management Officer in a concurrent capacity, exceeded the maximum allowable rate for a 4th class municipality in an amount totaling P15,400, resulting in excessive and irregular personnel expenditures.
On the monetization of leave credits, the audit team also flagged the LGU for allowing the monetization exceeding the maximum limit of 30 days in a given year as well as approving special monetization without the required supporting documents in CY 2025.
The disbursements totaled P1,587,488,17, with certain LGU officials allowed to monetize 87 percent to 90 per cent of their leave credits without prior approval and without a special purpose.
The report bared that special-purpose cash advances were granted to officials and personnel who were neither bonded nor duly designated as disbursing officers, exposing government funds to the risk of loss without indemnification in the absence of the required fidelity funds.
Among the officials were the MSWD officer, Municipal Health Officer, Municipal Nutritionist, Municipal Engineers, SK Municipal Federation president and the GSO designated, with the team noting that the SKMF president, being an elected official, was ineligible to be designated as disbursing officer.
Most of the cash advances were for specific municipal activities, with the payees directly procuring various goods or services, circumventing the prescribed procurement processes under RA 9184, the report said.
Payment of registration fees totaling P135,500 for attendance in activities conducted by recognized local government leagues were acknowledged through non-government receipts.
Most of the payments exceeding the registration fee ceiling of P2,800 per day, the report stated, with the overpayment amounting to P60,600.00
The LGU also allowed officials to claim travel per diem for travels to destinations within the 50-kilometer radius in excess of the maximum allowable rates and without proper justification or supporting documents.
Certain officials claimed total per diem of P2,250 in a single day, which should have amounted to only P135 per day pursuant to EO No. 77, the COA disclosed.
“The claimed per diem is extremely excessive, demonstrating a clear disregard of the prescribed rates and the principles of responsible use of public funds,” it said.
Some travel purposes could not be considered as public purposes, as they do not redound to the benefit of the majority of the public and do not meet the required criteria, the report noted, citing expendes incurred for assisting the representatives of Bagamanoc for Binibining Catandungan and VTC Got Talent Season 7, both of which are clearly non-essential government activities.
Other significant findings in the 2025 audit were: payment of telephone and load expenses to various personnel amounting to P373,081.00 without the required supporting documents and in excess of the maximum monthly rates, resulting in excess payments totaling P55,618.00; multiple cash advances granted to the Acting Municipal Treasurer, at times issued on the same day, resulting in the officer handling substantial sums of cash simultaneously; operationally inefficient payment for Job Order (JO) personnel, contributing to delays in the release of salaries, unfavorably affecting timely compensation and increasing administrative workload.