Ilocos Norte’s unimplemented projects, programs worth P499M

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DESPITE availability of funds under its continuing appropriation, the provincial government of Ilocos Norte has failed to implement programs, projects, and activities (PPAs) from 2016 to 2022 worth P499.76 million as of yearend 2023.

Government auditors said the local government’s failure to utilize the available appropriation is inconsistent with its duty to provide basic services and facilities to its constituents and runs contrary to provisions of RA No. 7160 or the Local Government Code.

“Appropriations covering the calendar years (CYs) 2016 to 2022 for capital outlay amounting ₱499,758,057.23 remained unutilized… thus denying the constituents the potential benefits the programmed projects may have offered,” the audit team said.

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It also said the idle funds represent lost opportunity to undertake other programs and projects of comparable importance.

The provincial government assured COA that it remains “vigilant in its duties to provide basic services to its constituents” even as it pointed out that all items in its PPAs are necessary and implementation-ready.

However, it explained that due to the timing of the release of the internal revenue allotment share of the province, some projects become too cramped for time to be undertaken.

Under the usual course of events, a local government unit (LGU) prepares an annual investment program identifying projects and programs that respond to a social or economic need of the community.

Once the following year’s budget is approved, the LGU draws up an annual procurement plan reflecting all procurement activities for supplies, equipment, infrastructure, and services that the LGU plans to undertake during the year.

Ideally, the implementation of the programs and projects should be done during the calendar year since appropriations that are left unused will revert to the general fund at the end of the fiscal year unless they are made available for spending through legislative enactment.

When this happens, the available project/program fund becomes a continuing appropriation which is considered available for such activities as a multi-year construction project.

Auditors noted that under the capital outlay of the provincial government of Ilocos Norte, there have been registries of continuing appropriations running for several years already.

Records showed there were P8.95 million in funds 2016, P30.16 million in 2017, P45.92 million in 2018, P169.68 million in 2019, P54.37 million in 2020, P24.93 million in 2021, and P165.74 million in 2022.

“The majority of the remaining funds were appropriated for infrastructure projects, office equipment, ICT equipment, motor vehicles and other machinery. For some reason, the funds allocated for the projects and programs during the aforementioned calendar years were not utilized or implemented,” the audit team said.

It noted that in 2022, there was a P115-million balance for the Metro Ilocos Norte Council earmarked to the construction of the transport hub for Ilocos Norte but the project was not carried out and the budget remained untouched.

“Notably, the Department of Transportation decided to fund the same. PGIN and DOTr executed a memorandum of agreement (MOA) on March 28, 2022, allocating P380,000,000 to finance the hub’s construction under the Project Name: Ilocos Norte Transport Hub and Parking Building (Central Terminal),” auditors said.

Since a bigger funding has been allocated for the project, the audit team pointed out that the P115 million “will no longer be needed” as long as the fund coming from the Department of Transportation proves sufficient.

The COA recommended that the provincial government make optimal use of limited resources by including only programs and projects that are necessary and can be readily implemented in its budget.

In addition, it said the continuing appropriations for 2016 to 2022 should be reviewed to determine which projects are still necessary and which ones may be abandoned so the funds can be diverted to other urgent purposes.

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