Alimodian vows tighter financial controls after COA flags PHP 2.7M trip

ILOILO CITY — The local government of Alimodian, Iloilo, has pledged to strengthen its financial controls and administrative procedures following Commission on Audit (COA) observations on its PHP 2.7 million capacity development and benchmarking activity in Cebu in March 2025.

Mayor Ian Kenneth Alfeche on Saturday, Oct. 31, acknowledged the audit observations and said the municipality was undertaking corrective measures, including addressing discrepancies in documentation and participant records.

The measures also include reviewing administrative procedures and strengthening financial controls to ensure greater economy, efficiency and compliance in future government-funded activities.

The five-day activity, conducted from March 11 to 15, 2025, involved PHP 2.7 million in expenditures that drew COA scrutiny over the necessity, reasonableness and propriety of the spending.

The PHP 2.701 million Cebu trip accounted for the bulk of a sharp increase in Alimodian’s overall staff training expenditures for 2025.

Alimodian’s annual training expenses surged from PHP 1.22 million in 2024 to PHP 4.38 million in 2025, an increase of PHP 3.16 million, or approximately 258% year over year.

Alfeche maintained that the activity was included in the municipality’s Capacity Development (CapDev) Plan for 2023 to 2025, which served as a three-year roadmap for strengthening the local government’s institutional capabilities and improving public service delivery.

He added that the municipal government had secured travel authority from the Department of the Interior and Local Government (DILG) before proceeding with the activity and had submitted the necessary supporting documents to concerned oversight agencies.

The mayor also clarified that although COA raised audit observations, no Notice of Disallowance (ND) had been issued against the expenditure.

“We recognize the public’s concerns regarding the necessity, reasonableness, and proper utilization of government funds. It is important to clarify that while COA raised audit observations concerning the activity, no Notice of Disallowance has been issued in relation to the expenditure,” he said.

Under government auditing rules, an audit observation identifies deficiencies or concerns requiring an agency’s explanation or supporting documents, while a Notice of Disallowance formally rejects an expenditure in whole or in part.

The absence of a Notice of Disallowance does not automatically resolve outstanding audit observations, which remain subject to COA’s evaluation of the agency’s explanations and documentation.

Alfeche also emphasized that the benchmarking activity included a re-entry plan intended to translate the knowledge and practices gained from other local government units into concrete improvements in local governance.

He said implementation of the plan was ongoing, with efforts to document progress and assess improvements in public service delivery.

He assured residents that the municipality would continue cooperating with COA and other concerned agencies in addressing outstanding audit observations and implementing recommendations.

“The Municipal Government remains committed to the responsible use of public resources, institutional accountability, and ensuring that capacity development initiatives deliver meaningful and measurable benefits to the people of Alimodian,” Alfeche stressed.