By: Gerome Dalipe
THE Iloilo Provincial Government must stop transferring funds to local government units that have not liquidated fund transfers in previous years.
This, after the Commission on Audit (COA), discovered that some P391.67-million remained unsettled by the LGUs as of 2018.
In its 2018 annual report, the Commission on Audit (COA) pointed out that some LGUs have not liquidated their previous fund transfers that have become “due and demandable.”
“Regular monitoring and analysis of fund transfers to other local government units, to ensure that these were collected when these become due and demandable, were not conducted,” read COA report.
The practice violated Sec. 6.1 of COA Circular 2016-005, which provides guidelines and procedures on the write-off of dormant receivables accounts, unliquidated cash advances and fund transfers to other government units.
This provision states that all government entities shall conduct regular monitoring and analysis of receivable accounts to ensure that these are collected when these become due and demandable.
Likewise, cash advances and fund transfers are liquidated within the prescribed period depending upon their nature and purpose.
The Provincial Government transferred funds to various municipalities and barangays to “accelerate the implementation of various programs and activities.
The recipients are required to submit the fund utilization report and report of disbursements upon its completion.
Under the memorandum of the agreement, the Provincial Government should require the recipient LGUs to submit the fund utilization report and report of disbursements upon its project completion.
But a review of the aging of fund transfers from other LGUs account showed that the liquidation for fund transfers were not regularly monitored and analyzed by the Capitol, the auditors said.
The unliquidated fund transfers from various municipalities in Iloilo totaled to P391,671,879.08 as of Dec. 31, 2018, the auditors said.
During the conference, the provincial accountant said the monitoring and analysis of fund transfers to other municipalities are the responsibilities of the Provincial Planning and Development Office of the Office of the Governor.
The accountant admitted there were fund transfers that were long overdue for liquidation, but with no demand letters issued.
Nevertheless, he agreed that demand will be issued to all local government units with outstanding fund transfers.
He also assured that he would visit various municipalities to meet and conduct a dialogue with their respective accountants relative to such concern.
In the report, the auditors asked the governor to direct the provincial accountant to coordinate with the planning and development office to monitor the status of the fund transfers’ implementation.
The accountant is also tasked to analyze the outstanding fund transfers, and issue demand letters to recipient LGUs to liquidate their fund transfer.
The governor is also asked to stop the release of fund transfers to other LGUs which have not implemented or liquidated the previous fund transfers.
The accounting’s office should also review the draft controls, policies, and guidelines submitted by the Internal Audit Services (IAS) to make corrections, modifications or revision of the transfer.
