ROXAS City – The Commission on Audit (COA) laid down numerous significant observations in its Annual Audit Report (AAR) for 2020 on the accounts and operations of the city government here.
According to state auditors, 70 percent of the appropriated and programmed projects under the Local Disaster Risk Reduction and Management Fund was not fully utilized, thus weakened the attainment of objectives to reduce disaster preparedness and response capabilities this time of coronavirus disease 2019 (COVID-19) pandemic.
Of the 20% Development Fund appropriation and programs worth P177.3 million for 2020, which included the P41.334 million programmed for pandemic response, only 18 percent was utilized, according to COA.
This, it added, resulted in unmet targets “to support measures and initiatives that would benefit the welfare of constituent communities and individuals and arrest the spread of COVID-19 disease.”
Also, state auditors observed non-compliance with accounting and reporting requirements in the receipt and utilization of cash and in-kind donations, which they said resulted to unreported discrepancies and “exposed the fund to usage not relevant to the purpose of aids/donations.”
As to the over P1.3 billion in City Properties and Equipment under “Property, Plant and Equipment (PPE), COA said “the physical existence, condition, completeness and correctness” of these “were doubtful…”
These city assets included P571.4 million in Buildings and Structures, P355.3 million in Infrastructure Assets, P150.6 million in Machinery and Equipment, P110 million in “Construction in Progress,” and P96 million in Land and Land Improvements.
The AAR for 2020 was officially received by the city government of Roxas under Mayor Ronnie Dadivas last June 16, 2021 and made public only this year.
COA sought explanation for its significant findings – “adverse” in previous years’ COA terminology.
On the P1.3-billion city assets that state auditors questioned, the AAR noted that “the City Government of Roxas conducted physical inventory…..The physical inventory had been conducted only by the GSO and not by a committee of three and was done only in selected departments…”
The city government offered this explanation: “…the City devoted most of its resources and efforts in combating the COVID-19 pandemic, hence the conduct of the required annual physical inventory was not facilitated in spite of the previous year’s recommendations on the PPE.”
State auditors’ observations also included unliquidated Cash Advances (UCAs) of over P5 million and erroneous recording of COVID-related transactions such as the following:
* P46,885,000 was earmarked for COVID-19 funds; of this amount, P46.847 million obligated for the inventory welfare goods for distribution and operations
* P7.6 million in unaccounted funds needed to be reconciled
* Goods for distribution as reported was P24.5 million worth while the Welfare Goods Expense as also reported was only a little over P1.3 Million. In the Trust Fund account, additional Food Supplies Expense was at P13.2 million. In sum, the P46.8-million COVID fund of the city appeared irreconcilable by the time audit was made.
In the inventory of drugs and medicines, over P8 million in procured drugs and medicines per Disbursement Voucher No. 101-2668-01 and paid by Check No. 002579491 was not supported with pertinent papers or as for whom those were issued.
This “….could not be easily determined since no supporting documents were attached to show the disposition, distribution or utilization of procured medicines no Requisition and Issue Slips were submitted,” according to COA.
Further still, dispensing of drugs and medicines did not pass through the GSO and City Health Office, according to COA, “and were dispensed or utilized without valid authorization or signed prescription order for antibiotics and other medicines. Hence it could not be determined whether these were used for the operation of CHO or distributed to targeted beneficiaries out rightly.”
Also, observed the state auditors, the use of Rapid Test Kits was “….not supported by list of names of PUI, PUM or a valid doctor’s prescription for its usage” while the distribution report was not submitted as of Feb. 26, 2021.
The same was earlier requested from the CHO and City Disaster Risk Reduction Management Officer (DRRMO) to substantiate distribution of medicines or medical supplies.
They also noted that the Report of Supply and Materials “was signed by an employee not authorized to perform custodial functions in the City Health Office.”
Meanwhile, as of Dec. 31, 2020, according to COA, “Inventories that remained undistributed / unconsumed at yearend were valued at P24.536 million for Welfare Goods for Distribution, P184,698 for drugs and medicines for distribution and P391,993.50 for medical supplies distribution.”
It further noted erroneous recording of over P5.8-million RT-PCR Testing Lab kit.
“The Office (COA) stand on the matter is for management (LGU) to render full accounting of all medical and dental and laboratory supplies delivered specifically the COVID test kits procured in CY 2020 whether used for operation or used in the RT-PCR Laboratory for a fee,” read part of the AAR.
COA also recommended that the Roxas City government “submit report on the physical count of inventories held for distribution and for consumption by type of inventory to determine the cost of inventory items issued and to restore the correct inventory account balances as of Dec. 31, 2020, specifically for Welfare Goods for Distribution valued at P24.536 Million, Drugs and Medicines for Distribution valued at P184,698.00 and Operation valued at P2.168 million.”
It can be noted that Roxas City received P202.716 million SAP-AICS (Social Amelioration Program – Assistance to Individuals in Crisis Situation) and P54.099 million Bayanihan Grant from the national government.
The city also reported to COA that in 2020 the food assistance budget and other relief goods purchased amounted to P29.385 million.
They also bought P1.5 million worth of tents for the homeless and P8.285 million in medicines, and vitamins were bought, as well as over P6.8 million went to cover expenses for cremation, steel coffin, rental of oxygen among others./PN
