Commission on Audit to Muntinlupa: Reconcile P101-million overdraft

MANILA, Philippines - The Commission on Audit (COA) has asked Muntinlupa City government to reconcile its expenditures after it found about P101 million overdraft in its spendings last year.

The COA gave the city government one month to explain and settle its expenditures.

In an audit certificate signed by supervising auditor Julia Ella-Moreno, the commission noted that items purchased by the city have “remained unadjusted in the books and were not supported by documents.”

“The inclusion of furniture of P17.7 million under construction in progress agency asset account resulted in overstatement and errors in classifying various expenses of P116.6 million and other maintenance and operating expense account,” Moreno said.

The COA findings stated the year-end balance of the cash in bank in the amount of P62.6 million was “unreliable.”

Muntinlupa City Mayor Aldrin San Pedro and his accounting and treasury department were told to produce the documents necessary to substantiate and reconcile the items in cash in bank-local currency and current account of the city.

In a separate document dated May 2009, COA National Capital Region Director Roland Rey requested the city government that the “recommended remedial measures be immediately implemented.”

The document was furnished to the Department of Interior and Local Government, Department of Budget and Management, Offices of the President and Vice President, Senate President Juan Ponce Enrile, and Speaker Prospero Nograles.

State auditors said the local government unit’s actual infrastructure projects of P582.7 million were “not based on a duly approved Annual Investment Program nor Annual Procurement Plan.”

COA also found that “various infrastructure projects totaling P399.6 million were paid despite incomplete documentation,” and had a ‘total overtime payroll of P74.5 million’ that exceeded the five percent allowable limit by P54.5 million.”

Cash advances also amounted to P71.4 million, and supplies purchases “did not pass thru bidding granted to members of the (Muntinlupa) City Council.”

There were also fund transfers ranging from P5 million to as much as P25 million from the Special Education Fund to the General fund and purchase of 40,000 pieces of trolley bags amounting to P22 million which is deemed “unnecessary” as it was funded through a loan, the COA reported.

In the executive summary, the commission found that the P67.2 million general fund cash balance was not enough to pay the Trust Liabilities totaling P73.3 million and cover items worth P55.2 million.

This resulted in an “overdraft of P61.2 million which is contrary to sound fiscal administration.”

The COA findings also noted the inclusion of furniture amounting to P17.6 million in the city hall’s rehabilitation contract cost of P240 million which was recorded as construction in progress agency assets which was deemed violative of government procurement policies.

Muntinlupa City officials said they are preparing pertinent documents to clarify what the COA alleged as questionable expenditures.

Omar Acosta, head of the city’s public information office, expressed confidence that the city would be able to explain the COA report.

“We will be able to explain things. We will be able to present documents that will clear the city government of what they say as inappropriate purchases,” Acosta said.

By Delon Porcalla, Rhodina Villanueva

Muntinlupa officials concerned should be made to answer for this P101 million overdraft in its spendings.