COA questions P50.43-M unaccounted fund transfers of DDB

Various government agencies and private institutions have yet to fully account for the P50.427 million worth of financial assistance received from the Dangerous Drugs Board about five years ago, according to the 2018 annual audit report of the Commission on Audit (COA).

As of December 31, 2018, the COA said the DDB has more than P163 million worth of receivables from different government agencies, local government units, and private organizations, but P50.427 million of this remains unliquidated.

The COA said the funds served as assistance for "drug treatment and rehabilitation centers establishment and maintenance of new drug treatment, as well as the operation and maintenance of existing ones and purchase of supplies from the Procurement Service."

State auditors blamed the failure of the DDB to strictly implement the memorandum of agreement (MOA) it signed with the agencies and foundations, as well as adhere to COA Circular Nos. 94-013 and 2007-001.

One provision of the MOA include the requirement for the receiving agencies to finish a project within two years upon receiving the notice to proceed.

However, the COA said there was "insufficient demand from DDB to project implementors for the submission of the liquidation reports that are expected from them."

The audit agency added the DDB failed to impose sanctions against erring recipients, kept outdated subsidiary ledgers and had insufficient supporting documents.

An example of the unliquidated financial assistance was the P6.5 million given to the Department of Health-Treatment and Rehabilitation Center last year for the maintenance of the Northern Mindanao Wellness and Reintegration Center.

"The MOA of the above [implementing agency] did not indicate/specify the timeframe of the project implementation but only stated that liquidation reports shall be submitted to the source agency within 60 days from full utilization of the release amount," the COA said.

"The ambiguity of the MOA will result to the utilization of the fund at the leisure of the recipient and the piling/accumulation of fund transfer balances of DDB," it added.

The COA urged the DDB to regularly send demand letters for agencies to liquidate their accountabilities, monitor the project implementation, and enforce the agreed timeframe of project implementation stated in the MOA.

The DDB, for its part, agreed to follow the recommendations of the COA during the exit conference. —LDF, GMA News