Findings No.4 COA Annual Audit Report 2006
July 28, 2008
Various expenses totalling P 8,285,882.20 incurred for the 250th Anniversary Celebration of the city were deemed extravagant and grossly excessive for failure of the designated Special Disbursing Officers to adhere fiscal responsibility on their cash advances contrary to Section 2 and 4(4) of PD 1445 which resulted to wastage of government funds.
Section 2 and 4(4) of Presidential Decree No. 1445 states that the Head of the Agency, as well as those who exercise authority over financial affairs, transactions and operations of the agency, shall take care that all resources of the government are managed, expended or utilized in accordance with law and regulations, and safeguarded against loss or wastage through illegal or improper disposition with a view to ensuring efficiency, economy and effectiveness in the operation of the government.
Audit revealed that a number of expenditures totalling P 8,285,882.20 out of the cash advances granted to designated Special Disbursing Officers were found to be extravagant and grossly excessive for lack of restraint or prudence, judicious or economy and exceeded the bounds of propriety. (Annex 8)
Meals and snacks served during the celebration amounted to P 2,767,343.18 notwithstanding the fact that the city government had paid P 472,233.25 for hotel accommodations that include meals and snacks for guests and visitors. (Annex 9) Among these visitors were thirteen (13) officers from the Department of Tourism and twelve (12) crafts demonstrators wherein meal allowances were also granted to them in the amount of P 113,750.00 and P 84,000.00 respectively. It was further noted that each participating Local Government Units received P 5,000.00 for meal allowances aside from the participation fee/honorarium of P 10,000.00 each for non-winning LGUs. Participating barangays also received P 5,000.00 each excluding consolation prizes of P 10,000.00 each for non-winning barangays. Apparently, the city government spent more on meals and snacks despite the fact that almost everybody was already given enough meal allowances.
Honorarium spent amounted to P 945,750.00 for the following persons and found to be excessive considering that it’s numerous in number. (Annex 10)
Cell cards costing P 63,510.00 were consumed during the celebration. Consumption of said cards were quite extravagant for six Special Disbursing Officers with an average usage of twenty cell cards at P 500.00 for a month celebration. Besides, the concerned Special Disbursing Officers were already entitled to P1,500.00 cell cards monthly chargeable against the Maintenance and Other Expenses of their respective offices.
Various medicines and drugs costing P 1,100,000.00 were procured without public bidding. These items were used during the Medical and Dental Outreach of the city. Procurement was made directly to Pharmaceutica Filipina de Visayas and payment was made out of the cash advance of the Special Disbursing Officer. Other Expenses accounted were likewise procured without bidding whereby most advantageous price could have been obtained by the city, as follows:
ParticularsAmountConstruction materials used for Booths-P 923,080.75Costumes, Gowns, T-shirts & Uniforms-879,091.02Fireworks-450,000.00Trophies, replicas and souvenirs-264,530.00Brochures, flyers and posters-122,414.00Plastic chairs and tables-59,180.00Communication Equipment-22,500.00Camera-18,500.00 TotalP 2,739,295.77
The obtaining conditions were attributed to non-adherence to fiscal responsibility on cash advances granted to designated Special Disbursing Officers.
As a consequence, the city government was deprived of utilizing optimally government funds to other purpose beneficial to its constituents.
Management concurs with the audit observations.
Enjoin all designated Special Disbursing Officers to adhere on the rules and regulations relative to the utilization of government funds with the end view of economy, efficiency and effectiveness. In like manner, conduct public bidding in all procurement transactions be it through cash advance or direct payments.
Instruct all designated Chairmen to prepare a detailed budgetary proposal before the activity commences so that ample time for review by higher authorities be made and to ensure that all items/supplies needed for any activity or grand affair of the city will pass through a competitive public bidding.
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