THE Commission on Audit has called out the Davao City government over the delayed submission of the Special Education Funds (SEF) budget and non-submission of disclosure reports regarding the utilization of the city’s P851.4 million SEF in 2024.
In its Compliance Audit report released on August 11, 2024, the COA said Davao City failed to comply with the transparency requirements outlined in the Department of Education (DepEd) – Department of Budget and Management (DBM) – Department of the Interior and Local Government (DILG) Joint Circular No. 1. S. 2017.
A copy of the report was submitted to the office of City Mayor Sebastian Duterte on June 20, 2025.
The same joint circular directs the Local School Board (LSB) to furnish the Local Budget Officer, the city accountant, and the city treasurer a copy of the SEF Budget within seven days upon its approval.
Under Executive Order No. 22, series of 2023, the city mayor is designated the LSB chairperson while the Schools Division superintendent sits as the co-chairperson.
On the other hand, the members are the chairperson of the Sangguniang Panlungsod (SP) Committee on Education, Science and Technology, the city treasurer, the representative of the Sangguniang Kabataan in the SP, the president of the city federation of Parents-Teachers Associations (PTAs), a representative of the teacher’s organization in the city, and a representative of the non-academic personnel of public schools in the city.
“The submission of the Special Education Fund (SEF) budget of the city budget officer and city accountant was delayed while the same document was not received by the city treasurer inconsistent with the DepEd-DBM-DILG Joint Circular No. 1, s. 2017,” the COA said.
The Sangguniang Panlungsod and the regional offices of the DILG and the DBM received no copies of the first to third quarter 2024 SEF Utilization reports, while the DepEd Central Office received its copies, delayed by between 17 to 61 days.
According to the City Budget Officer, while the hard copy of the SEF Budget was submitted late, it was already furnished with the softcopy file of the budget beforehand.
The City Treasurer explained that, being one of the members of the LSB, it was no longer furnished a copy of the SEF Budget.
Auditors recommended that the LSB appoint a focal person who will take responsibility for submitting copies of the budget to the intended recipient offices.
“Scrutiny of the received copies of the quarterly SEF Utilization Reports showed the submission of the reports to the DepEd CO was delayed for sixty-one, seventeen, and twenty-three days for the 1st, 2nd, and 3rd quarters of 2024. In addition, copies of the same reports were not furnished to the local Sanggunian concerned and the regional offices of the DBM and DILG,” the COA noted.
The COA warned that the non-submission of the SEF Utilization Report to the Sangguniang Panlungsod and the DILG and DBM regional offices “defeated the purpose of promoting and enhancing transparency and accountability in the allocation and utilization of the SEF.”
The LSB and concerned city officials acknowledged the audit observations even as they explained that the delay was not intentional. They added that the delay was caused by administrative constraints, including heavy workloads and challenges of coordination with other agencies.
On the other hand, the audit team verified that the city government was compliant with the posting of the SEF Utilization Report in conspicuous public areas, including the Bulletin Board of the City Treasurer’s Office, the Sangguniang Panlungsod, and the Davao City Overland Transport Terminal.
