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COA calls out UP system for reprogramming funds

/ 05:20 AM August 16, 2019

The Commission on Audit (COA) has called out the University of the Philippines System for reprogramming some P2.177 billion in funds, which the audit body said affected the delivery of state-of-the-art educational facilities to students.

In its annual audit report, the COA said that it appeared that several UP projects were funded from a budget allocation from previous years, creating doubt on whether the university was implementing projects funded by current appropriations,  or whether the programmed funds had been used for other purposes.

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The audit body added that UP was not authorized to use so-called savings for other projects without proper authorization.

“In the absence of explicit provision, the use of savings is deemed unconstitutional without authorization from the Department of Budget Management, more so, the unexpended balance could mean uncompleted, discontinued or abandoned works, activities/projects for which funds have already been appropriated,” the audit report said.

While COA said UP had always asserted its right to retain and make use of its unexpended balance, it cited the Supreme Court’s decision to declare the use of savings unconstitutional.

In 2014, the Supreme Court struck down then President Benigno Aquino III’s Disbursement Acceleration Program as unconstitutional, as it involves the cross-border transfer of savings to agencies outside the executive branch and to projects outside the approved national budget.

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TAGS: Commission On Audit, University of the Philippines System
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