The municipality did not use nearly ₱48 million of its 20% Development Fund; only 4 of 31 planned projects were carried out. The municipality also failed to submit required procurement documents on time, lacked supporting documents, and did not post procurement information online as required. This delays projects and violates procurement and budget rules.

Why It Matters

Recommended Actions

• Require the (a) Municipal Engineer (ME) in coordination with the Municipal Planning and Development Coordinator (MPDC) to improve the system of identifying and implementing priority PPAs to provide timely socio-economic benefits to its constituents
• (b) BAC to (i) submit copies of contracts, POs, and other documents required under the alternative modes of procurement
• (ii) comply with GPPB Circular No. 18-2020 on the conduct of procurement activities under RA No. 11949 or the Bayanihan 2 particularly the posting of ABC, contract or PO, Notice of Award (NOA), and other relevant documents to the GPPB Online Portal, Municipality’s website, or at any conspicuous place reserved for the purpose
• (iii) subject all procurements to public bidding unless the conditions are met for the use of alternative mode of procurement
• And (c) MA to (i) submit the DV and SD for the procurement of vaccines, parcel of lot and motor vehicle with transaction values of ₱3,842,400.00, ₱1,000,000.00 and ₱1,492,500.00
• And (ii) ensure that the necessary supporting documents attached to DVs are complete and in order prior to payment.

Original Audit Finding Excerpt

"The Municipality failed to utilize its 20% DF for CY 2021 of ₱47,959,904.40 when it implemented only four out of 31 programs, projects and activities (PPAs) structured in the Annual Investment Plan (AIP) for CY 2021 thus, resulted in the delay in project implementation contrary to Department of Budget and Management (DBM), Department of Finance (DOF), and Department of Interior and Local Government (DILG) Joint Memorandum Circular (JMC) No. 1 dated November 4, 2020. Other audit observations include (a) non-submission of Contracts and Purchase Orders (PO) within the prescribed period; (b) deficient supporting documents and the lack thereof; and (c) non-posting of the Approved Budget for the Contract (ABC), contract or Purchase Order (PO), Notice of Award (NOA), and other relevant documents to the Government Procurement Policy Board (GPPB) Online Portal, Municipality’s website, or at any conspicuous place reserved for the purpose contrary to COA Circular Nos. 2009-001 and 2012-001 dated February 12, 2009 and June 14, 2012, respectively, GPPB Circular No. 18-2020 dated September 16, 2020, Section 4(u) of Republic Act (RA) No. 11944 or the Bayanihan 2, and 2016 Revised Implementing Rules and Regulations (RIRR) of RA No. 9184. (Observation No. 4)"

Source Document