Findings No.5 COA Annual Audit Report 2005

July 25, 2008

5. Amount appropriated for 155 projects/programs/activities under the 20% Development Fund and Special Education Fund totaling P57,253,468.07 since 1994 to 2005 remained unimplemented/unutilized, in violation of Section 18 of Republic Act No. 7160, resulting to accumulation of idle funds in the bank.

Section 18 of Republic Act No. 7160 provides that local government units shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, programs, objectives and priorities.

For Calendar Year 2005 the following were appropriated for the projects/programs/activities of the City:

FundAmount Appropriated

Expenses

BalancePercent of Accomplish-ment20% Development FundP53,724,291.00P27,622,399.20P26,101,891.8051.4%SEF –Improvement & Rehabilitation of School Buildings1,665,000.00340,000.001,325,000.0020.4%

Evaluation made on the performance of the City on project accomplishments disclosed that there were 155 projects/programs/activities appropriated for Calendar Years 1994 to 2005 which remained unimplemented/unutilized, [Annex C], broken down as follows:

Year AppropriatedNo. of Projects

GF SEFTotal ProjectAmount Appropriated

General Fund Special Educ. FundTotal2005483078P 23,326,039.00P 2,434,142.75P25,760,181.7520043183919,591,719.36463,374.1920,055,093.55200310-104,185,425.520.004,185,425.52200214-141,517,973.790.001,517,973.7920015-53,044,866.050.003,044,866.0520002-2250,000.000.00250,000.0019991-131,792.110.0031,792.1119981-150,000.000.0050,000.0019973-32,133,135.300.002,133,135.3019951-1200,000.000.00200,000.0019941-125,000.000.0025,000.00TOTAL11738155P 54,355,951.13P 2,897,516.94P57,253,468.07

These appropriated amounts are deposited in the bank as time deposit. Though this earned an additional income thru interest earned for the amount deposited, the fact remained that the delivery of basic services and provision of adequate facilities, for which these funds were intended were not served.

The City justified that the delay in the implementation of these projects were due to delay in the processing of bidding, contract requirements, management constraint and availability of equipment.

In response to our Audit Observation Memorandum, the City Engineer commented and we quote:

“It should be noted that this office was and always on the fast tract when it comes to the implementation of city’s infrastructure projects, since it is also our goal to complete such projects on target dates, so that fund objectives could be realized. However, permit us to reiterate that there are factors that affect these goals. These factors include, but not necessarily limited to the following:

1. Lack of Project Engineers;

2. Overloading of our present pool of Project Engineers;

3. Delay and failure of procurement;

4. Non-availability of needed equipment;

5. Sudden increase in the prices of materials needed; and

6. Non-delivery of materials”

Recommendations:

Require the City Engineer to fast tract implementation of fully funded projects/programs/activities. Give priority to its implementation so that fund objectives could be realized.

Instruct the Bids and Awards Committee and the General Services Officer to coordinate for the early processing of bidding, contract requirements and procured materials.

Require the City Implementers to expedite implementation of projects to preclude incremental cost on the prosecution of project.

CLICK HERE for the latest 2nd Hand Laptops, Mobile Phones, SMART/ GLOBE /TALK 'N TEXT/ TOUCH MOBILE / SUN CELLULAR Postpaid, Pre-paid and International Roaming PROMOS, Philippine Airlines (PAL) and Cebu Pacific Airlines Airline AIRFARE DISCOUNT tickets for sale!

Check out our Updated/Latest List of GOVERNMENT JOBS AND OTHER GOVERNMENT VACANT POSITIONS, PRIVATE JOBS, PRIVATE FULL-TIME JOBS, PRIVATE PART-TIME JOBS and OTHER ONLINE JOBS in this link!

Written by admin · Filed Under Commission on Audit, Gingoog City