COA tells LWUA to return P121.56M in unused funds for potable water supply

The Commission on Audit (COA) has asked the Local Water Utilities Administration to return the P121.58 million set aside for a potable water supply project to the Department of Health as the allocation remained unused. 

COA made the recommendation in its 2018 Annual Audit Report on LWUA.

Out of the P121 million unused budget, P23.3 million came from the excess funds of 37 completed water district projects and P98.27 million came from 14 water district projects, which were not completed or considered non-operational.

COA said LWUA’s failure to return this amount would violate COA Circular No. 94-013 which states "the implementing agency shall return to the source agency any unused balance upon completion of the project."

It said that the LWUA disbursed excessive funds to seven water districts by a total of P8.687 million.

COA also flagged LWUA for its failure to secure final liquidation reports and credit notices from COA Regional Offices were not secured, a move contrary to Item 6 of the DOH-LWUA-DBM (Department of Budget and Management) Supplemental Agreement.

On top of the P121 million unused budget for water supply, COA called the attention of LWUA over the unauthorized reallocation of P59.469 million funding for the Potable Water Supply Project sans the approval from the Department of Budget and Management and Department of Health.

"We recommended that management request a post-facto approval from DBM and DOH for realignment of funds, reprogramming of beneficiaries and excess disbursements of 8.687 million for the seven water district projects and return the unutilized P121.583 million to DOH and/or request for realignment to other projects if warranted," COA said.

In response to the COA report, the LWUA argued that savings were generated from the implementation of various projects and that such savings was used for completion of implemented projects with sufficient funding and funding for new programs upon request of the water districts.

"To date, concerned water districts have not submitted liquidation reports on the implemented projects," LWUA said. —NB, GMA News