COA tells Dumanjug to return excess funds

CEBU, Philippines - The Commission on Audit has asked the Municipality of Dumanjug to return excess funds amounting to P2.6 million to source agency for completed projects.

COA has found a total of P19.5 million funds received by the municipality from different national agencies and local government units but remained unutilized and corresponding projects were not implemented.

Review of the balances of the accounts due to national government agencies amounting to P14.5 million and Due to LGUs amounting to P12 million or totaling P26.5 million disclosed that 73.49 percent or a total of P19.5 million was not implemented or remained unutilized.

Around 10.06 percent or a total of P2.6 million were excess funds for completed projects and 16.31 percent or a total of P4.3 million were on-going projects.

Interview of state auditors with the Municipal Planning and Development Officer disclosed that projects were not implemented because he was waiting for the instructions for the disbursement of the funds.

He said that some projects are still in the process of preparation of plans and program of works.

Likewise, COA said that excess funds amounting to P2.6 million should have been returned to the source agency because the projects had already been completed or projects were no longer feasible.

“The failure of management to implement the projects given by the different National Agencies and LGUs has deprived the constituents the immediate benefits of the projects,” said COA in its 2012 audit report.

COA has also recommended that the municipal government endeavor for the immediate implementation of priority projects given by national government agencies and other LGUs.

It pointed out that excess funds from completed projects or projects no longer feasible should be returned to the source agency in compliance with the guidelines of COA Circular No. 94-013.

Section 4.6 of COA Circular no. 94-013 states that, “Within ten (10) days after the end of each month/end of the agreed period for the Project, the Implementing Agency (IA) shall submit the Report of Check Issued (RCI) and the Report of Disbursement (RD) to report the utilization of the funds.  Only actual projects expenses shall be reported.  The Report shall be approved by the Head of the IA”.

Section 6.7 of the same circular further provides, “Return to the Source Agency (SA) any unused balance and refund of disallowance upon completion of the project”.—(FREEMAN)