The Commission on Audit (COA) has flagged the Provincial Government of Bohol (PGBh) for P15,023,699.38 in unliquidated fund transfers to non-government organizations (NGOs) and people’s organizations (POs), accounting for 80% of the total fund transfers due as of December 31, 2023.
According to COA’s 2023 financial audit, the unliquidated funds stemmed from the failure of implementing NGOs/POs to submit final utilization reports and supporting documents within the mandated time frame.
COA said that a huge portion of these funds has remained outstanding for years, undermining the provincial government’s ability to ensure proper accountability and transparency in public fund usage.
COA’s report revealed that the PGBh has been remiss in enforcing liquidation, despite repeated demands issued by the Provincial Accounting Office (PAcCO) in 2021, 2022, and March 2023.
The NGOs/POs failed to comply, leaving P3.5 million of the unliquidated funds idle for over 10 years and the rest accumulating from subsequent years.
The report noted that the delayed submission of liquidation reports hampers the provincial government’s ability to account for public funds accurately.
This delay not only risks financial losses but also compromises the efficient and ethical execution of government programs and activities, COA said.
COA attributed the long-standing unliquidated funds to deficiencies in internal control procedures and weak enforcement mechanisms. It pointed out that the PAcCO had not forwarded cases involving unliquidated fund transfers to the Provincial Legal Office (PLO) for legal action.
COA said the delay has stalled the issuance of final demands or the initiation of other remedies such as civil lawsuits or the write-off process for dormant accounts, as outlined under COA Circular No. 2007-001.
“The inadequacy of internal control policies and procedures denies management timely access to financial information, risking the orderly, ethical, and efficient use of public funds,” COA stated.
Among the unliquidated funds flagged by COA were:
P8.7 million (59% of the total) outstanding for one year, indicating poor compliance with reporting timelines.
P3.5 million (23%) idle for more than 10 years, despite COA’s prior recommendations for action.
Additional unliquidated balances from smaller, aged accounts spanning 2 to 8 years.
The deficiencies also resulted in the failure to safeguard public funds against misuse, fraud, and other irregularities.
COA reminded PGBh that under Article II, Section 23 of the Philippine Constitution, the state is mandated to promote accountability and transparency in governance, especially in financial transactions involving NGOs/POs tasked with implementing public programs.
COA Circular No. 2007-001 requires that NGOs/POs liquidate funds within 60 days after project completion, submit detailed reports verified by internal auditors, and ensure these are recorded in the government’s books.