Danao projects stalled by poor planning -COA

CEBU, Philippines - The City Government of Danao has failed to implement projects last year due to inefficient planning, reported the Commission on Audit.

COA, in its 2012 audit report, cited the appropriated P55.7 million for its 20-percent Development Fund and only P9 million or 16 percent was implemented.

It was found out that 21 projects amounting to P14.8 million were only scheduled for bidding during the second quarter, 41 projects amounting to P6 million were already completed and the remaining balance has not been reverted back to the General Fund, six projects amounting to P3.7 million were not feasible and subject for realignment, and 12 projects amounting to P22 million are still ongoing.

“In view of the failure of management to implement the various projects of the city during the audit year, its constituents were deprived of the benefits that could have been derived thereof,” read the audit report.

COA also found that funds from the national government agencies amounting to P38.7 million were not fully utilized and the unexpended balances were not returned to the source agencies contrary COA Circular 94-013.

Section 6.7 of the Circular provides, “Return to the Source Agency any unused balance and refund of disallowance upon completion of the project.”

For the year 2012, COA found that nine projects were already completed but the remaining balance of P3 million has not been returned to the source agency, seven projects amounting to P26.5 million are still on-going, five projects with a total amount of P3.4 million have already been completed but management has not submitted the fund utilization report to the source agency, and three projects amounting to P5.7 million for implementation.

In reply to the Audit Observation Memorandum issued and during the exit conference, the city is willing to comply with COA’s recommendations.

It was recommended that the city advise the officials concerned to coordinate with the City Planning Development Coordinator to conduct careful and proper planning in the implementation of identified projects.

“They should see to it that what has been planned or programmed be executed and completed for the intended beneficiaries to maximize the benefits therefrom,” COA said.

Unexpended balance of projects completed should be reverted back to the General Fund for further appropriation.

It was also recommended that the city officials implement the purpose of the financial assistance entrusted to them the earliest time possible so that the intended beneficiaries could maximize its possible positive effects.

COA further recommended that as soon as the purpose of the financial assistance has been attained, the city should liquidate the same in compliance with COA Circular 94-013 and return to the funding source any unexpended amount.  (FREEMAN)