CEBU, Philippines - The Commission on Audit (COA) has reminded the Province of Cebu on the submission of certified monthly reports on the utilization of the Local Disaster Risk Reduction and Management Fund (LDRRMF) or the calamity fund.
In its 2012 audit report, COA disclosed that the Province did not submit a monthly report on the use of the said fund and likewise did not transfer its unexpended balance amounting to P126.48 million to a special trust fund.
The failure is contrary to COA Circular 2012-002 dated Sept. 12, 2012 and the Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 10121, otherwise known as the Philippine Disaster Risk Reduction and Management Act of 2010.
The law also states that any such amount still not fully utilized after five years shall be reverted back to the general fund and made available for other social services to be identified by the local sanggunian.
“There is a need to transfer the unexpended balance of the LDRRMF to a special trust fund to act as stand by fund available for use without delay in the event of any disaster or calamity within a period of five (5) years. Any fund transferred to a trust fund account could no longer be used except for the purpose for which it was established,†read the COA report.
Last year, the Province of Cebu appropriated five percent or P98.72 million for LDRRMF in its General Fund for the 2013 annual budget, but only P36.89 million was used, leaving a balance of P61.84 million on top of the P64.64 million balance the previous year, or a total remaining balance of P126.48 million.
“The total unexpended amount was not transferred to a special trust fund because of a conflict of opinion between the Provincial Accountant and the then Provincial Budget Officer,†added the COA report.
The provincial auditor had reportedly long responded to the query by the provincial budget officer on the issue but to date, the same office continues to inquire as to the procedure even citing the closing of the books of accounts as an excuse.
Aside from this, no report on the utilization of the LDRRMF was prepared and submitted to the auditor for review and evaluation.
COA has asked the provincial accountant to prepare and certify as correct a monthly report on sources and utilization of DRRMF.
It also recommended that the assistant provincial budget officer, in coordination with the provincial accountant, already transfer the P126.48 million to a special trust fund. — (FREEMAN)