BY GEROME DALIPE IV
ILOILO – The provincial government has received P11.075 million from the Philippine Charity Sweepstakes Office (PCSO) Charity Fund, intended to support health, social welfare, and charitable programs for its constituents.
However, the funds have remained unutilized due to the absence of applicable guidelines, violating Section 6.c of Republic Act No. 1169, which mandates the proper utilization of such funds.
In its annual audit report, the Commission on Audit (COA) called out the provincial government for failing to utilize the fund for its intended purposes.
COA pointed out that this inaction deprived constituents of potential benefits that could have been derived from the fund, such as enhanced health programs, medical assistance, and other social welfare initiatives.
Under Executive Order No. 357-A, dated October 7, 1996, a proportionate grant from the Lotto Charity Fund is approved for local government units (LGUs) where lotto tickets are sold.
This grant is subject to the provisions of Republic Act (RA) No. 1169, which outlines its proper utilization.
Section 6.c of RA No. 1169 mandates that the allocated funds must be used by LGUs for maintenance of provincial, city, and municipal hospitals, and other health, social welfare, and charitable programs within their jurisdiction.
The intent of these provisions is to ensure that the Lotto Charity Fund directly benefits the communities through enhanced health services and welfare initiatives.
LGUs are expected to align their expenditures with these legal requirements to maximize the impact of the funds and provide essential services to their constituents.
The Province received the P11.075 million share from the PCSO Lotto Charity Fund, as of Dec. 31, 2023. However, the funds, which have been accumulating since 2018, remain unutilized.
The auditors noted the absence of a memorandum of agreement (MOA) has prevented the Capitol from properly utilizing the funds.
The provincial government is currently coordinating with the PCSO to execute the necessary MOA.
COA underscored the failure to utilize the funds has defeated the purpose of providing health programs, medical assistance and services, social welfare and charitable work for the province’s constituents.
The auditors added the oversight has denied beneficiaries access to crucial support and services.
Under Section 6.c of RA No. 1169, funds from the Lotto Charity Fund must be spent on maintenance of provincial, city, and municipal hospitals and programs for health, social welfare, and charitable work.
In response to Audit Observation Memorandum (AOM) No. 2024-011 dated March 21, 2024, the Provincial Government said it has taken steps to address the issue of unutilized PCSO Lotto Charity Fund amounting to ₱11.075 million.
Capitol said that relevant departments held a coordination meeting with the PCSO to expedite the execution of the Memorandum of Agreement (MOA).
A request has been submitted to the Office of the Governor seeking authority to sign the draft MOA between the provincial government and PCSO.
Once the MOA is finalized and approved, the provincial government aims to immediately deploy the PCSO Lotto Charity Fund for its intended purpose, ensuring that constituents benefit from essential health and social welfare services in compliance with RA No. 1169.
In the audit report, COA recommended to the provincial government to prioritize the immediate execution of the MOA and ensure its prompt implementation and utilization of the PCSO Lotto Charity Fund amounting to P11.075 million.
The auditors emphasized the program is designed to provide the necessary assistance and services to the intended beneficiaries and constituents of the Province.
The allocation is also intended for maintenance of provincial, city, and municipal hospitals and implementation of health programs, medical assistance, social welfare, and charitable work./PN
