CASH ON PAPER, JERSEYS IN HAND: COA flags PHP 6.5 million in Iloilo sports meet allowances

By Rjay Zuriaga Castor

ILOILO CITY — State auditors questioned the regularity and validity of more than PHP 6.5 million in uniform and meal allowances for the Iloilo Province Varsity-Athletic (PIVA) Meet 2024, citing procurement lapses, inconsistent distribution methods, and insufficient supporting documents.

The Commission on Audit (COA) flagged the transactions in its 2025 audit report. The funds were charged against the Special Education Fund (SEF) for the provincial government’s sports meet, held from September to October 2024.

The SEF is drawn from an additional 1 percent tax on real property and is earmarked for public education expenses.

COA found that the jerseys were distributed through payroll instead of undergoing proper procurement.

Auditors noted that liquidations submitted for the PIVA Meet 2024 included PHP 3.312 million for uniforms, computed at PHP 1,000 per recipient across 46 public schools and 71 para games.

Although beneficiaries signed payrolls acknowledging receipt of “cash allowances,” COA noted that recipients received no cash. Instead, playing jerseys were purchased and given to participants.

COA said supplying physical jerseys constitutes procurement of goods, which must comply with Republic Act (RA) No. 9184, or the Government Procurement Reform Act, through competitive bidding or approved alternative methods.

The use of payrolls in place of procurement documents, including purchase requests, canvass sheets, contracts, and delivery receipts, bypassed the required procedures, according to COA.

COA also said that by relying on signed cash payrolls rather than official supplier invoices and procurement records, auditors were unable to verify the actual cost, quality, and reasonableness of the jerseys, exposing the transactions to risks of misstatement or overpricing.

“The use of payrolls in lieu of procurement documentation precluded verification of the actual cost and reasonableness of the jerseys relative to the amounts reflected as received by beneficiaries,” COA said.

“This exposed the transactions to risks of misstatement, overpricing, and other irregularities, and indicated weaknesses in internal controls over disbursement and procurement processes,” the commission said.

Inconsistencies in meal allowances

The audit also flagged inconsistencies in the distribution of meal allowances, with liquidations totaling PHP 3.238 million at PHP 250 per recipient per day.

According to COA, distribution methods varied widely. Some participants received cash, others received cooked meals, and some schools pooled funds to buy food, with any excess divided among participants.

COA further noted that cash advances totaling PHP 3.433 million for meals and PHP 3.460 million for uniforms were released to two accountable officers only in December 2024, months after the September-October sports activities.

Capitol says role is limited

In its response to COA, the Iloilo Sports Development and Management Office (ISDMO) said its role was limited to disbursing approved allowance funds to designated accountable officers and participating schools.

The ISDMO maintained that it did not select the supplier, negotiate terms, or directly handle the procurement of jerseys.

The Provincial School Board (PSB) Secretariat and ISDMO explained that the uniform allocation was approved and budgeted as direct cash assistance or allowance to participating learner-athletes and delegates, rather than an agency-led bulk procurement of physical goods.

Because individual beneficiaries were expected to obtain their uniforms independently using the cash allowance, the PSB said it did not evaluate the transaction under government public bidding rules at the outset.

During implementation, school representatives and coaches also requested that funds be remitted directly to a common supplier for convenience, cost efficiency, and visual uniformity across participating teams.

On the funding delays, the ISDMO cited severe time constraints caused by the late approval of the SEF budget allocation and lengthy documentary processing.

Officials said they proceeded with the event despite the delays in good faith, to avoid disrupting scheduled sports activities for student-athletes.

During an exit conference on April 20, 2026, the provincial government pledged that all future bulk purchases of sports materials and uniforms would be included in the Annual Procurement Plan and executed through formal public bidding under RA 9184 rather than through cash payroll distributions.

COA also noted that the responsible accountable officers have since submitted school delivery receipts, evidencing that the jerseys reached participating athletes and satisfying proof-of-delivery requirements.