COA questions P3M aid to Cebu Chamber

CEBU, Philippines - The Commission on Audit has questioned the donation of P3 million by the Province of Cebu to the Cebu Chamber of Commerce and Industry for last year’s Cebu Business Month.

COA said that on November 19, 2010, the Provincial Government granted financial assistance to CCCI in the amount of P3 million without observing some of the requirements and procedures in the availment and utilization of such funds.

As stated in the project proposal, the CCCI will organize an annual business celebration called Cebu Business Month by gathering industry stakeholders in a month of relevant activities and projects that will focus on ICT, tourism and entrepreneurship.

One of the documents supporting the disbursement voucher is a Memorandum of Agreement entered into by and between Cebu Province and the CCCI.

State auditors found that the agreement was not notarized and did not indicate the date when it was signed by the contracting parties. It also had no date of commencement and completion of the project, no specific period to liquidate the funds and no submission of the required periodic financial and physical status report.

COA noted that from the project proposal, the activities to be funded were not specified and the funds requested were allocated to different committees such as P1.1 million for ICT, P275,000 for tourism, P638,500 for the Grand Chamber Awards Night and P1 million for the Visayas Area Business Conference.

“This has hindered the evaluation of the Summary of Expenses report submitted by the NGO because most of the expenses enumerated therein could not be related to the committees mentioned in the project cost/budget,” audit report states.

It added that only official receipts were attached to the Summary of Expenses; hence the nature of the expenses could not be validated.

The transaction was also reportedly not supported by a document showing the concurrence of the Sangguniang Panlalawigan as provided for under the Local Government Code of 1991.

The Capitol admitted that during the processing of claims there were details of supporting documents that were overlooked or missed, and in some instances, certain supporting documents were not attached to the disbursement vouchers.

As to the erroneous accounting treatments, the Provincial Accountant assured that appropriate adjustments will be made.

COA also recommended that the Provincial Planning and Development Office be tasked to monitor financial assistance to various organizations/groups and to review carefully the fund utilization report/summary of expenses/status report submitted by NGOs. —/BRP (FREEMAN)