Friday, July 04, 2008 NGOs fail to liquidate P20.9M aid
PROPER utilization of a total of P20.987 million in financial assistance to Cebu City-accredited non-government organizations (NGOs) and people’s organizations (POs) could not be guaranteed because of non-liquidation, the Commission on Audit (COA) said.
A third of the amount was given to 30 organizations two years ago, while the rest were unaccounted for prior to 2006 yet.
This, the COA said, was due to the “failure to monitor and require the submission of liquidation documents.”
COA Circular No. 96-003 provides that financial statements and acceptance of the project by beneficiaries or funding agencies, among others, should be submitted “within
60 days after completion of the project.”
“For projects amounting to P100,000 and more, the statements shall (also) be certified to by an independent certified public accountant or verified by the internal auditor of the funding agency,” the circular said.
The 30 organizations include the Cebu Investments and Promotions Center (CIPC), which the COA said has not liquidated a total of P2.579 million the city gave in 2006.
Post-audit period
The COA report, however, only covers accounts and operations from January to March 2007, as the City Hall failed to submit the April to December 2007 transaction documents within the prescribed post-audit period.
City Administrator Francisco Fernandez acknowledged that the 30 NGOs/POs may have submitted liquidation documents within April 2007 to December 2007.
He said, though, that the organizations should have accounted for the financial assistance within 2006.
Review
“(We’ll review this) to know where the problem is,” Fernandez said.
Aside from the CIPC, the COA said the Emergency Rescue Unit Foundation (Eruf) still has 2005 unliquidated balance of P1.949 million, and a Nov. 21, 2006 unliquidated balance of P875,000; and the University of San Carlos still has to explain how it used P1.058 million the City gave it last May 17, 2006.
The Cebu Association of Printers, Inc., too, still has to liquidate P1.26 million.
NGOs/POs also have a previous years unliquidated financial assistance amounting to P3.4 million in the trust fund proper, P50,000 in the trust fund-CDF, and P4.81 million in the trust fund-priority development assistance fund.
In a separate interview, though, CIPC managing director Joel Mari Yu said it is impossible for them not to have liquidated the amount.
Replenished
“Dili na tinood. Besides, dapat kahibalo mo sa media nga ang City Hall dili mo-replenish kung wala maka-liquidate (That’s not true. You in the media know that City Hall doesn’t replenish unliquidated funds). So it is not possible for us to receive additional assistance if we have not liquidated (past cash aids),” he said.
The CIPC is the marketing arm of the City Government’s South Road Properties.
Last March 26, the City Council authorized Mayor Tomas Osmeña to sign a memorandum of agreement (MOA) with the Cebu Economic and Business Foundation, Inc., also known as the CIPC, for the City to give P3 million in financial assistance.
Among the target programs of the CIPC were for promotions like economic briefings, image-building activities like production of materials, including videos and brochures.
The programs were recommended by Yu and approved by Osmeña.
Fernandez said he will call a meeting with the concerned NGOs and POs and discuss with them the COA findings. (RHM)
