Findings No.3 COA Annual Audit Report 2006

July 28, 2008

Due to the month long celebration, a total amount of P 15,851,590.19 was spent in connection with the city’s 250th Grand Anniversary Celebration of El Fuerte de la Concepcion del Triunfo, thereby prompt implementation of some projects were not effected.

The city’s 2006 Annual Investment Plan to be funded out of the 20%Development Fund was made in accordance with the Department of the Interior and Local Government (DILG) and Department of Budget and Management (DBM) Joint Memorandum Circular No. 01 s. 2005 dated September 20, 2005. It has a total annual budget of P 51,031,392.91 to finance various socio-economic development projects and environmental management programs of the city. The total budget was divided among the three main programs are as follows:

Social development program-P 30,269,990.91Economic development program-7,710,926.00Environmental management program-13,050,476.00 TotalP 51,031,392.91

Specific projects/activities with the corresponding budget were itemized under each program. It aims to achieve socio-economic development and environmental outcomes thru investment and capital expenditures taking into consideration cost recovery and entrepreneurship.

Records disclosed that management gave priority on funding for the projects/activities of the 250th Grand Anniversary Celebrationof El Fuerte de la Concepcion del Triunfo out of the 20% Development Fund. It was increased from the original budget of P 12,958,970.00 to P 15,881,590.19. Additional funds were taken out of IRA monetization and realigning funds from other projects. (Annex 7) During the year, expenses in connection with the celebration amounted to P 15,851,590.19 which covers 31.06% of the total expenditures of the 20% Development Fund.

The city government through the energetic innovation of the Local Chief Executive by restoring the historical site of Fort Santiago (Cotta) in some way promotes tourism and investments of the city. However, the month-long activities programmed for its 250th Grand Anniversary Celebration entailed substantial amount to carry out its various activities without considering limit and control of the disbursements of each activity.

As a consequence, prompt implementations of various projects were not effected. (Annex 7)

Management concurs with our audit observation.

Recommendation

Instruct the City Planning and Development Officer to give priority in the implementation of all programmed activities funded by 20% Development Fund to ensure that the ultimate beneficiaries can avail of those projects, as programmed. In like manner, utilization of funds to a particular program/project must be limited and controlled to utmost economy.

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