Findings No.7 COA Annual Audit Report 2004

July 25, 2008

7. The City Engineer’s Office and the City Planning and Development Office failed to submit on time copies of contracts, programs of work, plans and specifications and other related documents, in violation of COA Circular No. 76-34 and COA Circular No. 89-229.

The management of the audited agency is required by law and/or rules and regulations to furnish the head of the auditing unit with copies of contract orders and supporting documents. This is designed to enable the auditing unit to perform its duties relating to the post audit of the transactions at the most appropriate time and manner without in any way delaying or obstructing the implementation or prosecution of the project.

COA Circular No. 76-34 partly provides that contracts/ letters/purchase orders should be submitted to the Auditor within five (5) days after its perfection.

COA Circular No. 89-229, dated March 21, 1989, partly provides that copies of all contracts, variation orders, change orders, extra works orders, purchase letter orders and supplemented contracts together with their supporting documents shall be submitted to the Auditor within five (5) days after the perfection thereof.

The COA Technical Services Office in connection with its technical review and inspection of infrastructure contracts/projects requires the submission of approved plans and specifications, detailed breakdown of approved agency estimates of the program of work, approved PERT/CPM network diagrams and contracts.

The City Engineer’s Office and the City Planning and Development Office failed to submit on time, the Contracts, Program of Works, Plans and Specifications and other related documents of the following projects:

Project

Date Contract

Was Executed/ Project Started

Documents

SubmittedNo. of Days Delayed as of Dec. 31, 2004 Status of Project as of Dec. 31, 2004

Concreting of Junctions Odiongan- Malinao Road and Anakan-Malibud Road with project cost amounting to P10 Million and P9.8 Million, respectively. (Negotiated Contract with Gingoog Alsons Ready Mix & Aggregates Supply).

Construction of River Control Dike along Brgy. 9, Gingoog City amounting to P300,000.00. (Supplemental Agreement with EMCD).

Proposed Repair/Improvement of Multi-Purpose Hall, Barangay 16, Gingoog City. (P157,030.31) Contract of Agreement with EMCD.

Communal Irrigation Projects

Malinao CIS

Maribucao CIS (Phase IV)

Bal-ason CIS (Phase II)

Kasingpitan CIS

Lunao CIS

October 22, 2003

September 29, 2003

July 28, 2003

Mar. 6, 2003

Jul. 30, 2003

Mar. 6, 2003

June 7, 2003

January 15, 2004

Oct. 22, 2004

Aug. 19, 2003

Not submitted

80 days

388 days

18 days

114 days

Project on-going

Project was completed Dec. 31, 2003.

Project completed on Sept. 6, 2003. Final billing paid on CY 2004.

Project on-going by Ad-ministration.

Further, it was noted that projects for inspection/evaluation and review were not acted by the Technical Services Specialist (TAS) because the documents required by TAS which our office indorsed to the concerned offices were not immediately acted and/or complied by concerned officers. (See Annex B)

In effect, the Auditor was not able to conduct timely inspection of the projects and evaluate whether accomplishments were in accordance with approved plans and specifications.

During the exit conference, the Assistance City Engineer and the City Planning Officers promised to fast track the submission of the documents as required under our Audit Observation Memorandum and to observe compliance of our recommendations on time.

Recommendation:

Require the City Engineer’s Office and the City Planning and Development Office to submit copies of contracts, programs of work, plans and specifications and other related required documents to the Auditor for review and evaluation within the prescribed period of five (5) days in compliance with COA Circular Nos. 76-34 and 89-229.

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