The municipality used only 60% of its disaster risk reduction and management fund, left a large balance unused, recorded some unpaid expenses as paid, and had ₱15.1 million in disbursements without adequate documentation.

Why It Matters

Recommended Actions

• Continuously ensure the implementation of all PPAs and maximize the utilization of available funds to mitigate and alleviate the adverse effects of the COVID-19 pandemic and calamities
• And (b) require the MA to (i) recognize in the books the correct amount of transfer to the unexpended balances of DRRMF as Trust Liabilities – DRRMF account
• And (ii) submit the requisite documentary requirements to reliably support the claims thereof.

Original Audit Finding Excerpt

"The Local Disaster Risk Reduction and Management Fund (LDRRMF) was not maximized as planned as exhibited by the utilization of ₱24,951,623.68 or 60.39% of its appropriated sum of ₱41,315,110.17 as at year-end, leaving an unexpended balance of ₱16,363,486.49. Also, Management erroneously recorded some of unpaid expenses as utilization and transferred the erroneous amount to the unexpended balance of LDRRMF under the trust fund, thus the reported balances of the Trust Liabilities-DRRMF and other affected accounts were unreliable and not fairly stated. Moreso, disbursements totaling ₱15,146,216.00 had inadequate documentation contrary to COA Circular No. 2012-001 dated June 14, 2012, thereby affecting the reliability and propriety of transactions."

Source Document