THE National Council for Children’s Television (NCCT), an attached agency of the Department Education (DepEd), incurred obligations totaling P60.056 million in 2023 against budget allotments of P59.588 million, thereby posting an overdraft of close to a half million pesos.
State auditors flagged this as a violation of Sections 37 and 38, Chapter 2 of the Government Accounting Manual for National Government Agencies.
The provision of the GAM states that heads of any agency of the government “shall not incur nor authorize the incurrence of expenditures or obligations in excess of allotments” released by the Department of Budget and Management (DBM).
According to the records of NCCT’s financial transactions during the year, it received P17.37 million for personnel services (PS), P35.174 million for maintenance and other operating expenses (MOOE), and P6 million for capital outlay (CO).
Obligations incurred under the MOOE and CO were below the budget allotment but it was under personnel services that NCCT exceeded the available funding with P19.295 million, resulting in excess obligations of P1.824 million.
To make up the numbers, the overdraft was offset against what was left of the budget for the MOOE and CO.
This move created a bigger trouble for the NCCT as the audit team noted there was no record that the modification of allotment class from MOOE and CO to PS was approved by the DBM.
Auditors found the overdraft was attributed to the personnel services “unlikely,” noting that the total Retirement and Life Insurance Premium corresponds to the approved Plantilla positions in 2023.
However, NCCT management explained that the overdraft was created by funding deficiency due to the hiring of additional casual/contractual personnel.
The NCCT budget officer said the DBM authorized the hiring of additional contractual personnel but no allotment of funds was released for the extra manpower.
