Although the municipality spent over 60% of its disaster risk reduction fund, it did not follow all rules. Reports were submitted late, supporting documents were missing, and supplies were recorded as expenses immediately instead of being tracked as inventory, violating COA and procurement regulations.

Why It Matters

Recommended Actions

• Require the MA to (a) submit on a monthly basis the report on the sources and utilization of LDRRMF based on the required format prescribed by COA Circular No. 2012-002 dated September 12, 2012
• (b) ensure that supporting documents are complete and in order before payment to contractors and suppliers is made
• And (c) recognize all types of inventories as asset upon purchase and recognize the used portion as expense upon submission of signed issuance documents to the MAO.

Original Audit Finding Excerpt

"The Municipality utilized ₱18,789,426.49 or 62.30% out of its LDRRMF of ₱30,159,175.06 for disaster risk reduction and management activities in compliance with RA No. 10121. However, infractions were noted such as (a) delay in the submission of the Report on the Sources and Utilization of LDRRMF; (b) deficient supporting documents and the lack thereof; and (c) outright recognition of supplies as expense instead of inventory contrary to COA Circular No. 2012-002 dated September 12, 2012, the 2016 Revised IRR of RA No. 9184, and Section 114 of the Manual on the NGAS for LGUs, Volume I. (Observation No. 5)"

Source Document