THE COMMISSION on Audit’s (COA) report on the Iloilo Provincial Government’s unliquidated fund transfers, amounting to nearly P1 billion as of 2023 stresses the importance of fiscal accountability in governance.
Public funds, by their very nature, are entrusted to government institutions with the expectation that they will be managed judiciously and for the public good. COA findings cite significant lapses in compliance with liquidation policies, as mandated by COA Circular No. 2016-005. These delays not only contravene regulations but also prevent a clear assessment of the progress and effectiveness of the programs, projects, and activities (PPAs) funded by these transfers.
Beyond administrative inefficiency, the impact of delayed liquidation stifles the completion of vital projects, such as school infrastructure improvements and waste management initiatives, many of which remain unfinished years after their allocated implementation periods. For instance, P742.234 million was transferred to various local government units (LGUs) in 2023 alone, yet the outstanding balance surged to over P1 billion by year-end. Among these, unliquidated funds from as far back as 2019 tied to classroom construction and other school-related projects reflect how such delays directly affect the delivery of essential services.
The education sector is not the only casualty. COA also flagged unliquidated transfers for COVID-19 response programs and solid waste management projects. These initiatives, critical to public health and environmental sustainability, face setbacks that ripple through communities. When funds meant for these purposes remain unaccounted for, they risk being misused or becoming entirely ineffective.
The Iloilo Provincial Government must strengthen its monitoring mechanisms and enforcement of compliance with liquidation timelines. LGUs, as recipients of these funds, should be held accountable for ensuring timely reporting and adherence to project implementation schedules. The failure to enforce such mechanisms erodes public confidence and perpetuates a cycle of inefficiency.
COA’s recommendations, including demanding liquidation of overdue balances and ensuring adherence to the six-month implementation period, are steps in the right direction. However, these must be complemented by a cultural shift within governance structures — one that values fiscal discipline as a cornerstone of public service.
Beyond the numbers, unliquidated funds breach public trust. Every peso unaccounted for is a peso withheld from its intended beneficiaries. Transparency in fund management is non-negotiable. It is the bedrock of good governance and the linchpin of a functional democracy. As stewards of public resources, local government leaders bear the responsibility of ensuring that every fund transfer translates into tangible benefits for the people.
