More adverse findings found by COA to the financial transactions of Cam Norte Prov’l Gov’t | The Fenix Files

more adverse findings to lgu cam norte

Camarines Norte, Bicol, PH (November 25, 2017) – More than P997 millions of various financial transactions of the Provincial Government of Camarines Norte reflected with adverse findings from the audit of state auditors ending December 31, 2016.

ACCURACY DID NOT ASCERTAIN ON THE FINANCIAL STATEMENT

According to the Auditor’s report, the COA Audit Team did not ascertain the accuracy of the balances of the CIP (construction in progress) accounts under the Trust Funds (TF), representing the prior year transactions in the total amount of P172, 729,796.89 million, because of the inability of the LGU Camarines Norte to prepare and submit the Subsidiary ledgers and supporting documents for the said accounts.

FINDING DEFICIENCIES AND LACKING OF DOCUMENTS ON EVALUATED REQUESTS FOR EVALUATION AND TECHNICAL INSPECTION OF PROJECTS

The Auditor called the immediate attention and action of the Head of the Provincial Government of Camarines Norte in connection with the several deficiencies and lacking of documents on the evaluated requests for technical inspection of projects amounting to P411.6 million and for the contractual evaluation of projects totaling P37.6 million.

COA said the evaluated requests for contractual evaluation and technical inspection of projects serves as prerequisite to the endorsements to COA Regional Technical Service Office in order to conduct a timely inspection on the existence of the implemented projects. COA added that the lack of documents and deficiencies caused delay and early detection of defects and errors in the procurement process and evaluation of its compliance with applicable laws, particularly the Implementing Rules and Regulations (IRR) of the Republic Act No. 9184 (The Government Procurement Reform Act).

The COA recommended to the Head of LGU Camarines Norte to direct the Provincial Engineer to comply the required documentary requirements and to re-submits various requests for technical inspection and contract evaluation. The recommendation also said for the LGU to avoid unnecessary delays in the conduct of contract evaluation and technical inspection of infrastructure projects and observe the necessity of compliance with the required documentary requirements for submission within the time frame for review and inspection.

ADVERSE FINDINGS ON PAMANA FUND IMPLEMENTATION

According to the Auditor’s findings, the procurement process through competitive bidding of PAMANA Fund totaling P167.61 million were not made strictly in accordance with the provisions of the Department of the Interior and Local Government (DILG) and the Office of the Presidential on Peace Process (OPAPP) Joint Memorandum Circular (JMC) No.3, series of 2016, COA Circular No. 2012-001 and the Revised Implementing Rules and Regulation of Republic Act (RA) No. 9184, which may adversely affect the validity of the contract for the procurement and payments made. The Auditors find the following additional adverse findings:

  1. The procurement process was commended without the Memorandum of Agreement (MOA) and its Certificate of Availability of Fund (CAF).
  2. The DILG Provincial Director or his duly authorized representative was not invited to attend at the bid opening.
  3. Unauthorized change of title from Construction of Concrete Bridge and Concreting of Approach Road on both sides along Caayunan-Oliva to Basud Construction of Bridge, Brgy. Caayunan, Basud.
  4. The Statement of Works (SWA) submitted does not corroborate with other documents such as the S-Curve, PERT/CPM, Cashflow and Payment Schedules and Manpower and Equipment Utilization.

Recalls earlier that the implementation of PAMANA project of the Provincial Government Camarines Norte was ordered by OPPAP to  transfer the implementation to DPWH Camarines Norte, this was confirmed from the previous meeting attended by the Office of the Presidential Adviser on Peace Process (OPAPP) Secretary Jesus Dureza and Under Secretary Diosita Andot together with Camarines Norte 1st District Representative Renato J. Unico, Jr., and District Engineer Ricardo R. Gutierrez of the DPWH Camarines Norte.

Read More: https://fenixfilesblog.wordpress.com/2017/10/07/tff-special-report-pagpapatupad-ng-mga-pamana-projects-sa-camarines-norte-tinanggal-sa-kapitolyo-dahil-sa-mga-anomalya/

RECOMMENDATION TO FILE ADMINISTRATIVE CHARGES AGAINST ERRING OFFICIALS AND EMPLOYEES FOR CONTINUOUS NON SUBMISSION OF NUMEROUS DISBURSEMENT VOUCHERS

The State Auditors recommended the filing of appropriate administrative charges against those erring officials/employees determined to be responsible for the consistent, non-submission of transaction documents/accounts to the Auditor’s Office such as Disbursement Vouchers (DV), Journal Entry Vouchers (JEV) and its supporting documents for Calendar Year 2015 and 2016 totaling P13, 151,044.07.

Remember that the Disbursement Vouchers cannot be released unless it was duly signed by the authorized signatory of the concerned LGU, which in the case of the Provincial Government of Camarines Norte the authorize signatory to disburse for its expenditures is the Governor, Provincial Treasurer and the emanating head of the requesting department.

The COA required the Provincial Treasurer to immediately submit the DV’s, JEV’s and its complete supporting documents and comply the requirements prescribed in Section 100 of P.D. 1445, Section 347 of RA 7160, COA Circular 2009-06 and Section 6.05 of COA Circular No. 95-006.

ISSUANCES OF SPECIALIZED PROVISIONAL RECEIPT INSTEAD OF THE PRESCRIBED GOVERNMENT PRINTED RECEIPT

Specialized Provisional Receipt was issued to payers/customers acknowledge the payments of goods and services totaling P5.8 million instead of a prescribed government printed receipt not in consonance with Section 69 of Government Accounting and Auditing Manual (GAAM). COA added, that there is no assurance that collections were all accounted in the books of the Provincial Government.

The COA recommended to LGU Camarines Norte to stop the practice of using temporary receipts. Instead, issue Accountable Form (AF) No. 51 as an acknowledgement of payment from customers and comply strictly Section 69 and 72 of GAAM.

UNAUTHORIZED PURCHASED OF GOODS USING THE UNREMITTED AND UNDEPOSITED CASH

Cash amounting to P6.6 million were not remitted/deposited to the depository bank instead used to purchase goods. The COA recommended depositing intact all collections to the authorized depository bank the Development Bank of the Philippines (DBP) Account Number 0610-037149-030 and requires the Disbursing Officer that all disbursements/withdrawals from the revolving funds be made by issuance of checks subject to accounting and auditing procedures.

UNLIQUIDATED CASH ADVANCE FROM CONFIDENTIAL FUND

Cash advance for the Confidential Fund (CF) amounting P6.0 million remained unliquidated as of December 31, 2016 which is not congruent to provisions as embodied in Joint Circular No. 2015-01, thus, exposing the funds to possible misuse or misapplication and overstating the asset accounts and understating the expenses accounts.

The COA recommended to LGU Camarines Norte to require the accountable officer concerned to immediately settle and/or liquidate his accountability pursuant to Joint Circular No. 2015-01 dated January 8, 2015 and Section 89 of P.D. No. 1445.

CASTING DOUBT ON THE TRANSPERENCY AND EQUITY IN THE PROCUREMENT OF MEALS AND SNACK FOR THE PALARONG BICOL 2016

Procedural and documentary requirements in the procurement of meals and snack for the Palarong Bicol 2016 in the total amount of P4, 025,460.00 million were not strictly complied contrary to pertinent sections of the Revised IRR (R-IRR) of R.A. No. 9184 and COA Memorandum No. 2012-001, respectively, thus casting doubt on the transparency and equity in the performance of the activity.

DEFECTIVE DELIVERY OF HOSPITAL EQUIPMENT FUNDED THRU THE PREVIOUS LOAN FROM LAND BANK OF THE PHILIPPINES (LBP)

The desired results and benefits to be derived from the acquisition of various hospital equipment thru borrowing from Land Bank of the Philippines (LBP) was not attained due to delivery of Hospital Equipment with specifications differed from the pre-approved Loan Evaluation Report of LBP contrary to Section 2 of P.D. No. 1445 and IRR-A Section 20.1 of R.A. No. 9184.

The COA recommended to the LGU to impose administrative sanction on the responsible officer/s accountable for said Hospital Equipment. Ensure that the BAC Secretariat in all phases of procurement process should see to it that the requesting end-user is well represented during deliberation and require the BAC Secretariat to explain why during the conduct of the pre-procurement conference there is no representative came from CNPH as the end-user nor TWG member seat.

FINDING EXCESSIVE INCREASE IN THE SUMMARY OF TOTAL SUSPENSION, DISALLOWANCES AND CHARGES

The State Auditors have found the questionable increase in the disbursements of more than P268.8 million made by the Provincial Government of Camarines Norte in calendar year 2016, in comparing to the previous suspension and disallowance they have been issued in the previous year, which is the combined total in 2015 of the notice of suspension, disallowance and charge from the disbursements and expenditures of the Provincial Government of Camarines Norte is only amounting to P22,720,555.63 million.

“Under COA rules, the notice of suspension and disallowance is issued on expenditures that are considered, “doubtful legality, validity or propriety; illegal, irregular, unnecessary, excessive, extravagant or unconscionable”.

Read More: https://fenixfilesblog.wordpress.com/2017/11/16/more-than-p268m-lgu-cam-norte-transactions-questionable-coa/

Meanwhile, those various adverse findings found by the state auditors from the financial transactions of the Provincial Government of Camarines Norte will affect the Local Government administration plan to apply for a new excessive loan transaction amounting to P560 million, because of the mandatory requirements imposed by the Department of Finance (DOF) which requires the COA Annual Audit Certificate for the past 3 years with no adverse findings against the LGU. ENDS/The FENIX Files/rif

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