BY GEROME DALIPE IV
ILOILO City – The Commission on Audit (COA) has flagged the Iloilo Provincial Government for unliquidated fund transfers to local government units (LGUs) amounting to P979.147 million in 2023.
In its annual audit report for 2023, COA cited the substantial volume of accounts requiring monitoring, analysis, and liquidation as a significant factor behind the delays. The agency pointed out that this non-compliance with Item 6.1 of COA Circular No. 2016-005 has led to long-outstanding accounts remaining unliquidated as of December 31, 2023.
State auditors expressed concern that the failure to settle these balances prevents a clear assessment of the status of the programs, projects, and activities (PPAs) funded by these transfers.
A review of the general and subsidiary ledgers (GL/SL) for the “due from LGUs” account revealed that P742.234 million was transferred to various LGUs in 2023.
While liquidations and refunds totaled P667.727 million, the auditors discovered that outstanding balance surged to P1.054 billion by year-end, up from P979.147 million in 2022.
The increase was attributed to a bulk release of P259.352 million in December 2023, despite significant liquidations earlier in the year.
Special education fund (SEF) transfers
COA reported a slight improvement in liquidating SEF transfers, with the unliquidated balance dropping from P243.873 million to P230.015 million in 2023.
However, P81.488 million from 2021 and earlier — equivalent to 35.4% of the total unliquidated balance — remains unsettled.
Further scrutiny by state auditors revealed unliquidated fund transfers from as early as 2019 involving six LGUs, with additional balances from 2020 and 2021 tied to school infrastructure projects such as classrooms, multipurpose halls, fences, and school equipment purchases. These projects, with a six-month implementation period, remain incomplete years later.
The Provincial School Board secretary acknowledged monitoring only transfers made from 2021 onwards, leaving older balances unchecked.
Letters requesting liquidation were sent to school heads, but no responses or updates have been received.
COVID-19 and solid waste management (SWM) projects
In addition, COA also flagged unliquidated transfers for COVID-19 programs and SWM projects. The auditors revealed that about P278.547 million in 2020 and P10.916 million in 2021 were allocated for pandemic-related programs, but P52.417 million remains unliquidated as of year-end 2023.
Of the P89.108 million transferred in previous years for waste management, COA found out that only P3.512 million was liquidated in 2023, leaving P29 million unliquidated.
Recommendations
In the audit report, COA emphasized that these delays not only violate liquidation policies but also hinder the proper evaluation of project implementation and accountability.
The agency urged the provincial government to strengthen monitoring mechanisms and compliance enforcement and demand liquidation of overdue balances.
The auditors also recommended to the provincial government to ensure adherence to the six-month implementation and liquidation timeline.
These steps, according to COA, are essential to uphold fiscal accountability and ensure funds are used effectively for their intended purposes.
COA also called on the provincial government to strengthen its monitoring mechanisms and enforce timely liquidation by recipient LGUs to ensure accountability and compliance./PN
