DAVAO City Mayor Sara Z. Duterte-Carpio said that the Commission on Audit report in 2017 that an online news website tackled as news is actually old news as it has already been superseded by the Annual Exit Conference for 2017.
She was referring to the online news article headlined, "P570M worth of Davao City spending, accounts in 2017 lacked documents."
"All of these transactions/procurements were the subject of the COA Resident Auditor’s Audit Observation Memorandum (AOM) issued prior to the conduct of the required Annual Exit Conference for the year 2017," Duterte-Carpio said with regards allegations that the city had several transactions that were not covered by the appropriate documents.
She said that the required documentation, information, and or comments explanations were submitted on time to the COA and all the matters were duly rectified and resolved.
"It is noteworthy that there were no misuse or loss of public funds. As can be observed, no notice of suspension or disallowance was issued in relation to these COA AOMs because we put a high value on transparency," she said.
The mayor said that the missteps, especially on erroneous or missing documents were immediately corrected to avoid doubt on the transactions.
"We are happy with the COA reports because it helps us improve our system in transactions," she said.
Based on report of the Commission on Audit (COA) has raised several red flags over Davao City's finances in 2017, noting that P569.855 million worth of spending and accounts lacked supporting documents.
Based on the review of the COA report, there had been inconsistencies on the procurement law of P69 million worth of infrastructure projects, worth P476,102 for drugs and medicines which lack appropriate documentary requirements, worth P13,583,695 school equipment which beneficiaries and lack of proof of receipt by beneficiaries, and P486,339,408.95- balances of the inventory accounts total as of 31 December 2017 which are in doubtful validity since non-existing items.
For the inconsistencies of procurement law on P69 million worth infrastructure projects, it was stated in the report that COA recommended that the management require the Bids and Awards Committee to avoid generic minutes of the meetings conducted and include the discussion on the readiness of the procurement process as provided by the procurement law.
The city government officials concerned explained that the BAC has substantially complied with the requirements of RA 9184, but admitted that they may have erred in their style in preparing the minutes of pre-procurement conferences, which were expressed in generic terms.
"However, they assured that auditing team that the BAC for infrastructure projects will comply with the recommendations on the conduct of the pre-procurement conference especially in the detailed preparation of minutes thereof pursuant to the provisions of IRR or RA7160," the COA report said.
On the other hand, on the issue of procurement of P476,102 drugs with lack of appropriate documentary requirements citing the lack of Certificate of Product Registration from Food and Drug Administration and the inconsistency of expiration dates from pharmacist and sales invoice signed by General Services Office in the medicines procured from La Forteza Company, a letter reply from Schools Division Superintendent last December 27,2017 also answered COA.
In that letter reply, Davao City Schools Division Superintendent assured that the management is amendable to the recommendation and to closely coordinate with the BAC and suppliers to ascertain details that are material and substantial to the whole procurement process "and that upon the delivery of the items to this agency the management require the submission of pharmacist's certification to the GSO for inspection, which is to be done simultaneously.
For the worth P13,582,695 for E-classrooms, the management commented that a letter reply from Deped Schools Division Superintendent dated January 15, 2018, that they adhere to the recommendations of necessary documents, in preparation for the annual Special Education Fund (SEF) Budget. The auditors replied that while they recognized efforts of to comply audit recommendations, they noted really that the equipment were actually delivered, and the distribution did not include some of the identified school beneficiaries.
"To correct this deficiency, the audit team encourages management to observe new guidelines on the use of SEF, pursuant to DepEd-DBM-DILG Joint Circular No. 1, s. 2017 Section 5.2.2 thereof requires the LSB to require the SEF budget by program/activity/project, allotment class and per school based on DepEd approved School Improvement Plan (SIP)," the COA report read.
For the 486,339,408.95 balances of the inventory accounts total as of 31 December 2017 that were noted to be in doubtful validity, in a reply letter, the OIC-GSO said that there has already been a inventory committee conducting physical count of supplies and materials in various offices. They confirmed the audit observation that there were supplies and materials already utilized or consumed but have not been dropped from the books. Hence, they have submitted to the accounting office the results of the inventory count and certifications to support the request for dropping of non-existing supplies and materials.