COA flags OVP over deficiencies in project implementation

MANILA, Philippines — The Commission on Audit (COA) has called out the Office of the Vice President (OVP) over several deficiencies in the implementation of its locally funded projects (LFPs) totalling P44.664 million under its Angat Buhay program. 

Based on COA’s annual audit report uploaded on its website on Tuesday, the OVP transferred in 2018 a total of P44,664,978.64 to 29 cities and municipalities to finance various projects and activities as part of its Angat Buhay poverty alleviation program.

Among the deficiencies cited by the audit body was OVP’s failure to demand official receipts (ORs) as well as liquidation and accomplishment reports from the recipient local government units (LGUs), “casting doubt on the regularity, completeness and accuracy of the projects.”

The COA noted that of the 29 LGUs that received funding from the OVP, only 10 issued ORs for the transferred amounts. 

The audit body said this was in violation of the memorandum of agreement between the OVP and LGUs as well as of COA Circular No. 2012-001 on the Revised Guidelines and Documentary Requirements for Government Transactions and the Presidential Decree 1445 or the Government Auditing Code, which all mandate that the implementing agencies, in this case the recipient LGUs, shall “immediately” issue the ORs for the amount they received from the source agency (SA).

“Moreover, the OVP did not diligently follow up the submission of ORs, which is imprudent for… (SA), whose fund is being disbursed... It is of note that the absence of ORs casts doubt on the authenticity of fund transfers,” COA said.

The COA said that while the OVP claimed that seven of the 29 projects were already completed as of end-2018 and five more as of March 25 this year, or a total of 12 projects amounting to P19.608 million, no liquidation and accomplishment reports were ever submitted by the LGUs.

“However, as at year-end, and even as of March 25, 2019, no liquidation reports and quarterly reports were submitted to the OVP, or posted on the LGU-implementing agency’s website, as required under Section 90 of the general provision of 2018 GAA (Government Appropriations Act),” the COA report read.

The audit body pointed out that under the MOA between the OVP and the LGUs, the latter shall regularly submit to the former their quarterly accomplishment report, which shall include fund utilization report, report of checks issued and report of disbursements certified correct by the municipal/city accountant and approved by the local chief executive.

The state auditors reminded the OVP that the liquidation and accomplishment reports of the LGUs shall be submitted to COA not later than Dec. 31, 2019 as stated in the 2018 GAA. 

The COA said all the OVP funds that remain unutilized by Dec. 31 shall be reverted to the national treasury.

“As discussed, the inadequate monitoring by the OVP of the required reports does not speak well of its advocacy of helping the poor. The advocacy does not end at transferring the funds,” COA said.