COA finds P2.9M ineligible charges against Ormoc City’s disaster funds

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GOVERNMENT auditors questioned the P2.96 million in expenses that were charged to funds of the Ormoc City Local Risk Reduction and Management (LDRRMF) in 2023 on the ground that these were regular expenditures that should have been taken out of the city’s budget.

The Commission on Audit (COA) said charging of ineligible expenses against the local government’s disaster fund is contrary to Joint Memorandum Circular No. 2014-01 issued by the National Disaster Risk Reduction and Management Council (NDRRMC), the Department of the Interior and Local Government (DILG), the Department of Budget and Management (DBM), and the Civil Service Commission (CSC).

Among the improper expenses auditors flagged were two P980,000 for the repair of watercraft and service vehicles owned by the City Disaster Risk Reduction and Management Office (CDRRMO).

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Audit records showed both contracts went to the ESE Auto Parts with funding deducted from the city’s Mitigation Fund.

Also tagged as invalid were two payments for “fuel, oil, and lubricants” to Fueltech Gas Station for P219,868.66 dated August 3, 2023 and P215,258.54 paid on September 12, 2023.

The audit team likewise questioned reimbursement of travel expenses totaling P79,789 for March and October 2023 about the repair of a drone and a Wave Maxter rigid hull inflatable boat (RHIB); three catering contracts with JI Catering Services totaling P395,600 for meals and snacks served during the Charter Day celebration on October 20, 2023, the Barangay and SK elections, and Undas 2023; and payment for internet subscription worth P90,000.

“It should be noted that the above expenditures are part of the CDRRMO’s regular operations and functions whether there has been a calamity or not. These are administrative in nature and not calamity preparedness/rehabilitation and recovery activities, hence, should have been funded under regular MOOE (maintenance and other operating expenses) or capital outlay of the General Fund,” the audit team pointed out.

By charging such expenses against the Disaster Fund, the COA said the local government unit is defeating the purpose of the appropriations for making Ormoc City better prepared for calamities and emergencies.

The audit team recommended that Mayor Lucy Torres Gomez require the City’s DRRM Council, the CDRRMO, and the City Budget Office to revisit the guidelines on the use of the LDRRMF and adhere to the provisions of Joint Circular No. 2012-01.

In its reply to the audit observations, city officials notified the COA that they are amenable to complying with the auditors’ recommendations.

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