OVER P4.4 million in unliquidated cash advances. Wrong use of Special Education Fund (SEF). Millions in unimplemented programs. Over P7.4 million in lost earnings. Inadequate bond for town treasurer and an unsecured treasurer’s office.
Such summed up this year’s additional findings reported by Senior State Auditors on the 2010 operation of the Municipality of Tigbauan, Iloilo. This, as the latest Annual Audit Report (AAR) from the Commission on Audit (COA) uncovered as well town collections not remitted intact or in full for at least five years in a row.
As such, COA wants immediate action from town officials particularly Mayor James Excel Torres.
Exact amount wanting liquidation is P4,461,511.73 “thus exposing government funds to misappropriation and misuse,” COA said.
And wrong disbursements too from the SEF worth P223,027.39 “thus depriving the (town’s) students and teachers of the benefits derived there from.”
“In the post-audit of disbursements…it was noted that there were disbursements made by the Local School Board amounting…which were not in accordance with the rules and regulations on the utilization of Special Education Fund,” COA said.
With this, COA recommended for the immediate stop of SEF mis-use “not in accordance with the guidelines set for its utilization.” Provisions of the law, COA stressed, “should be strictly complied with.”
And then the issue of nearly P6 million in unimplemented projects identified under the mandatory 20% Development Fund which is sourced from LGUs’ Internal Revenue Allotment share. COA in validating the report said constituents were deprived of the benefits.
To note, it is mandatory for each local government unit (LGU) to set aside 20% Development Fund for local development plans. While compliance was met on the budget allocation, unimplemented were over P7.4 million in projects.
“It shall be the responsibility of every Municipal Mayor to ensure that the 20% of the Internal Revenue Allotment (IRA) is optimally utilized hence it is but proper that programs and projects contained in the development plan be fully implemented,” the COA said.
As for lost earnings, COA reported of unrealized income worth P7,440,000, no thanks to some 48 markets stalls left unused.
“The Municipality entered into a loan agreement of P20M from the Development Bank of the Philippines for the construction of public market perimeter stalls. The loan was released April 28, 2009. The project was completed sometime in the latter part of 2009 and is ready for occupancy on the early month of 2010. However, as of this writing, the stalls were not yet occupied/rented,” COA said.
Continued delay, the Commission stressed, becomes “a burden by paying for the loan amortization without deriving income from it.”
“The projected income had the market stalls were rented during the year could have been a big help in sustaining market operation as well as accomplishing the programs and projects that would alleviate the lives of its constituents,” COA said.
And while a bidding for the stalls have been set, COA auditors learned of the delays thus calling anew the attention of Mayor Torres.
“The act of the Local Chief Executive in postponing the bidding and revising the guidelines is an offshoot of the possible mockery of the bidding.”
Meantime, COA also wants official explanation on the inadequate bond mandated on every town treasurer.
“In the conduct of cash examination, it was noted that collections of the municipality ranges an average of P1.5 million per month or more but the bond of the OIC Municipal Treasurer was only P225,000 thereby exposing government funds to risk in case the accountable officer absconds, transfers or is relieved from service,” COA said.
Worse even is the town’s treasurer office itself found by COA as “not properly secured exposing government funds and property to risk of loss thru theft due to its accessibility to unauthorized personnel contrary to sound internal control.”
Turned out that inside the treasurer’s office is a restroom for public and common office use with local taxpayers and employees in nearby offices “free to go in and out because there are no restrictions impose on them.”
19jherman68's Blog Site 