SEVERAL non-government organizations (NGO) and people’s organizations (PO) failed to explain how they spent some P50 million in financial assistance from the Cebu City Government, the Commission on Audit (COA) said.
In its recently released audit report for 2017, COA said the unliquidated fund releases to some NGOs and POs was due to the City’s laxity in requiring the submission of liquidation reports and the failure of the implementing organizations to settle their expenses.
COA said there are also pending liquidation reports in the pre-audit section.
Of the P50 million, some P29 million or 59 percent was still unliquidated because the NGOs and POs failed to submit reports on how they used those funds.
“Considering that the balances pertain to releases made in 2016 and earlier years, the liquidation reports should have been submitted long ago and any unused funds should have been returned to the City,” reads a portion of the COA report.
There are liquidation reports for some P10 million or 22 percent of what the City disbursed to NGOs and POs. But these were suspended in the pre-audit section due to certain deficiencies or some lacking documents.
Under the memorandum of agreement (MOA) between the City and the various NGOs and POs, the City may take legal remedies and actions against the latter in case it fails to complete the projects or violates a provision in the agreement.
In an interview, Acting City Treasurer Veronica Morelos said they have yet to receive the list of NGOs and POs that failed to liquidate.
Asked if there might be a possibility that the NGOs and POs misused the funds, Morelos said only the concerned organizations can answer that, since they were the ones who spent the funds.
“The NGOs and POs should be the one answering how they spent the funds they received and why they can’t liquidate. They really need to liquidate it because it’s a public fund,” she said.
To qualify for financial assistance, an NGO or PO should be accredited by the City and should submit project proposals for the fund release.
COA has directed the City Treasurer’s Office to write demand letters to the NGOs and POs that were granted the financial aid.
The auditing office has also asked the City to take action against NGOs and POs, pursuant to the MOA they signed.
Morelos said she will send demand letters to them once she will have the list of those who failed to liquidate. (RVC)