Wednesday, July 02, 2008 COA official reminds LGUs about following guidelines in using calamity funds By Linette C. Ramos Sun.Star Staff Reporter
WHILE relief operations and disaster response are necessary in emergency situations, a Commission on Audit (COA) official is reminding local government units (LGUs) to follow policies on the use of calamity funds.
COA does not set a limit on how much an LGU can spend for disasters and calamities, as long as expenses do not exceed what was allocated for calamities in the annual budget.
Lawyer Chona Labrague, officer-in-charge of COA 7 regional legal and adjudication office, also cautioned LGUs on the use of their calamity funds without a state of calamity declaration in their areas.
The reminder came when LGUs across the country are in the thick of relief operations and disaster response after landslides and flooding hit many provinces when typhoon Frank hit the country last week.
In Cebu City, at least P5 million will be used to help families of the victims of the sinking of mv Princess of the Stars, a Cebu-bound vessel that sank off Sibuyan Island in Romblon province last June 21.
At least P2.5 million was earmarked for the financial assistance for families, while another P2 million was spent so far for meals served at the action center for the last 11 days.
At least P200,000 is spent a day for meals alone, which are served to the victims’ relatives awaiting updates on their loved ones at the City Government’s action center at the Cebu City Sports Center.
Assurance
City Administrator Francisco Fernandez and City Councilor Gerardo Carillo both assured that the funds that will be appropriated will be recorded and proper accounting will be done to make sure that no public funds are wasted.
As stated in Section 324 (d) of the Local Government Code of 1991, the Local Calamity Fund can be utilized for relief, reconstruction, rehabilitation and other works or services related to calamities or disasters that may occur during the budget year, provided that such funds are utilized only in the area or portion of the LGU or other
areas declared under a state of calamity by the President or the local legislative body.
Although the sea tragedy happened in Romblon, most of the victims are from Cebu and the Visayas area.
“The LGUs are mandated to set aside five percent of their estimated revenues for the year solely intended for calamities. As to how much can be spent for each calamity, there is no restriction on that provided it does not exceed the five percent,” Labrague told Sun.Star Cebu.
Compliance
All COA guidelines and circulars on the accounting of the Utilization of the Local Calamity Fund appropriations should also be complied with, she said.
Carillo said the City has spent some P2 million for the food alone since the action center opened last June 22.
At least 500 packed meals are served for breakfast, 1,000 for lunch and around 800 for dinner. Each packed meal costs P80.
All expenses incurred for the operations of the action center will be charged to the City’s Calamity Funds, including fuel and other supplies.
The Cebu City Government has P27 million in its calamity funds, with five percent of estimated income reaching only P40 million so far this year. Some P13 million has been appropriated earlier for dengue fever prevention efforts and fire incidents.
“We have only spent P2 million so far. Some P2.5 million has been earmarked for financial assistance to the victims’ families but we have not released that yet. We will make appropriations in the coming days to ensure that the action center will continue to operate,” Carillo said.
He also assured that all expenses will be recorded and properly accounted for and will be presented to the City Council.
