THE Commission on Audit (COA) has found that the Talisay City Government charged several ineligible expenditures to its Local Disaster Risk Reduction and Management Fund (LDRRMF) in 2023 and 2024, contrary to national guidelines governing the use of funds intended for disaster preparedness, response and mitigation.
The findings were detailed in COA’s 2024 annual audit report.
Traffic command center project not in disaster plan
Auditors flagged the charging of P20.94 million in 2023 for the rehabilitation, repair and installation of the Talisay City Traffic Communication and Command Center, a project that was not included in the approved Local Disaster Risk Reduction and Management Plan (LDRRMP).
“Payment of P20,944,241.93 for the Rehabilitation/Repair/Installation of the Talisay City Traffic Communication and Command Center was charged against the LDRRMF for CY 2023, even though it is not directly related to disaster risk reduction,” COA said.
The project, which had a total contract cost of P24,992,802.41, began on July 31, 2023, and was 80 percent complete as of Oct. 19, 2023.
A payment of P18.74 million (net of taxes) was released on Jan. 8, 2024.
The City allocated P73.99 million for its 2023 LDRRMF, with P51.79 million earmarked for the 70 percent Disaster Preparedness and Mitigation Fund and P22.19 million for the 30 percent Quick Response Fund (QRF).
However, auditors found that the disbursement charged to the 70 percent preparedness fund was not listed in the City’s 2023 LDRRMP, based on the Annual Budget and Annual Investment Plan.
COA said the LDRRMF may only be used for authorized disaster-related purposes as defined under the National Disaster Risk Reduction and Management Council, Department of the Interior and Local Government, Department of Budget and Management and the Civil Service Commission (NDRRMC-DILG-DBM-CSC) Joint Memorandum Circular 2014-1 and COA Circular 2012-002, which outline eligible activities such as preparedness, rescue, relief and rehabilitation.
“Paragraphs 4.3 and 4.4 of Item 4.0 on Policy Guidelines under NDRRMC, DILG, DBM and CSC Joint Memorandum Circular 2014-1 dated April 4, 2014 stated that the budgetary requirements for personal services, maintenance and other operating expenditures, and capital outlay of the LDRRMO shall be sourced from the budget of the local government unit, subject to Section 76 of Republic Act 7160,” COA said.
Meanwhile, allowed uses of LDRRMF under COA Circular 2012-002 include:
Pre-disaster preparedness (training, rescue equipment, supplies, medicines)
Post-disaster repair and rehabilitation of public infrastructure and damaged equipment
Insurance premiums for property and disaster volunteers
Relief and recovery programs for areas affected by disasters, calamities, epidemics, or emergencies
A review further showed that none of the approved 2023 Programs, Projects and Activities (PPAs) under the LDRRMP corresponded to the traffic system project and no revised or supplemental LDRRMF Investment Plan was submitted to the City Council.
“Inquiry with the Local Disaster Risk Reduction and Management Officer (LDRRMO) revealed that no revised and/or supplemental Local Disaster Risk Reduction and Management Fund Investment Plan (LDRRMFIP) was prepared or submitted to the Sangguniang Panlungsod (SP) for approval during the year,” COA said.
The LDRRMO also told auditors he was not aware that the project was charged to the disaster fund.
“The LDRRMO also stated that he was not aware of the charging of the said project to the LDRRMF, as that information was with the Budget Office,” it added.
023 LDRRMP PPAs (Summary)
Total estimated cost: P137,089,026.66
Emergency response equipment & vehicles – ambulances, water tank truck, rescue boats, cutter/spreader tools, PPEs, medical and health equipment (various amounts)
Communication & early warning systems – UHF/VHF radio upgrades, C4 flood early warning system (P13.5 million)
CSWDO support programs – capacity development for children/seniors, PWD DRRM programs, food security, waste management, stockpiling (various amounts)
Climate change & DRRM IEC – workshops, signage, IEC materials
Fire station construction – P20 million
Medicines, vaccines, vitamins – P25 million
Food and relief assistance – P5 million
Disinfectant and sanitation equipment – P500,000
30 percent QRF – P47,089,026.66
Based on the table shown by COA, there was no item that would correspond to the contract amount of P24,992,807.28 for the repair or installation of a traffic system.
“It is also worth noting that the total estimated cost for the PPAs in the LDRRMP was higher than the appropriated amount for LDRRMF,” COA said.
2024: Salary differentials, gratuity pay also taken from disaster fund
For 2024, auditors noted that P5.7 million was again charged to the LDRRMF for activities not related to disaster-risk management, including:
P2.7 million – salary differential and gratuity pay
P2.95 million – rice assistance for barangay health workers
P47,250 – LDRRMO year-end evaluation
COA said salary-related expenses are not among the allowable charges under the LDRRMF. Under DBM Budget Circular 2024-8, gratuity pay for Contract of Service and Job Order workers must be sourced from available appropriations or surplus through a supplemental budget — not from the disaster fund.
City justifications rejected
During the exit conference, City officials argued that the traffic command center work was related to disaster preparedness, saying CCTV cameras were damaged during typhoon Odette and that the repairs were supposedly included in their plans. They also justified charging salary differentials and gratuity pay to the fund by saying the recipients were responders assigned to the LDRRM Office.
However, COA maintained that:
The City must furnish auditors with a revised or supplemental LDRRMP to support its claim regarding the CCTV repairs.
Compensation-related costs cannot be charged to the LDRRMF, regardless of personnel assignment.
Only expenditures directly tied to approved disaster-risk management activities may be charged to the fund.
COA recommendations
COA recommended that Talisay City stop charging ineligible expenses to the LDRRMF, require the City Budget Office and LDRRMO to explain the questioned transactions and ensure that only disaster-related PPAs are funded to avoid depleting resources intended for calamities and emergencies.
“The Audit Team emphasizes that only expenses for disaster-risk management activities shall be charged to the LDRRMF,” COA said. / CDF