Findings No.3 COA Annual Audit Report 2006

July 26, 2008

3. Failure to require the submission of status report on projects from the recipient local government units and non-monitoring of projects funded by the Province totaling P30,564,619.65 may lead to unreliable report of project accomplishment of the agency and may weaken the accountability and responsibility of the end users.

For strong internal control system, recipient agency should submit Report of Implementation showing the physical accomplishment and financial status of the project fund received from the provincial government. Project Accomplishment Report should be validated to provide for a reasonable assurance on the reliability of the reported status/accomplishment. The report should be simple yet comprehensive and understandable for users/readers especially the management to have a reliable basis for recommendation /and or decision- making.

Interview with the Provincial Planning Development Office (PPDO) personnel disclosed that monitoring of projects totaling P 30,564,619.65 was seldom undertaken. (Annex 3) That, the accomplishment report prepared was based on submitted report by the Municipal Planning and Development Coordinator, if there is, but more often the PPDO personnel will do the gathering of information/data from the Municipality, there being no accomplishment report submitted. Likewise, recipient Barangays were not submitting status report of the provincial project funds.

The report prepared by the PPDO was based on the format prescribed by the National Economic and Development Authority (NEDA) which accordingly the Local Chief Executive (LCE) or the top management may not be inclined to read because of its being not only tedious but also it does not provide the needed information for decision making at a glance.

This has transpired because prior to the release of fund, the provincial government did not stipulate in the Memorandum of Agreement (MOA) with the recipient LGU the rendition or submission of Accomplishment Report showing the financial and physical status of project fund.

The monitoring personnel at the PPDO explained that regular monitoring was not made possible due to the unavailability of vehicle.

Vehicle is not a hindrance in performing the expected task on project monitoring considering that the Provincial Government owned a number of good running-condition or serviceable vehicles. It may only need coordination with other offices or bringing the matter to the top management or LCE’s attention.

In effect, accomplishment Report may not be representing the actual financial and physical status of accomplishment as of a given period.

Furthermore, the prevailing practice may weaken the accountability and responsibility of the recipient LGU or end users.

The management had likewise concurred with our observations and assured the implementation of our recommendations.

Recommendation:

Require the recipient agency to submit Accomplishment Report showing the physical and fund status of implementation, in a form of MOA entered into by and between the Provincial Government and the recipient LGU. The MOA shall stipulate the responsibility of the latter to render financial and physical status report of the project implementation and be accountable for the proper use of the fund pursuant to accounting and auditing rules and regulations.

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Written by admin · Filed Under Commission on Audit, Misamis Occidental