COA questions presidential fund disbursements

MANILA, Philippines—More than P1.2 billion from the President’s Social Fund (PSF) was transferred to various nongovernment organizations and government agencies in 2010 and irregularly recorded as donations, thus making it difficult to establish accountability for the money, according to the Commission on Audit (COA).

The COA, in its 2010 report on the Office of the President (OP) that was released over the weekend, noted that of the P1.268 billion, some P391 million was transferred to several nongovernment organizations (NGOs) without disbursement vouchers and supporting documents.

The P391 million was given out in the first half of 2010, when the Arroyo administration was in office. The recipients included the GMAC Foundation which received money for various socio-civic projects in Pampanga and Bicol, and the Bicol Network for Community Organizing and Linkages which received financial assistance for various economic projects.

The other recipients of the P391 million were the Libmanan-Pulantuna Planters Federation, Gawing Tama Movement Inc., Philippine Bamboo Foundation, Lopez (Quezon) Greater Manila Residents Association and the Evena Multi-Purpose Cooperative.

’09 donations also questioned

The Aquino administration took over in the second half of 2010.

The COA had also questioned in 2009 the practice of recording as donations funds transferred from the PSF to government agencies and NGOs.

The audit agency said this was contrary to two COA circulars that prescribed rules and regulations to ensure that money transferred to implementing agencies was properly used and accounted for, and to promote transparency and accountability in the use of funds given to NGOs.

In its latest report, the COA said that P1.268 billion from the PSF was transferred to NGOs and government offices in 2010 and these were recorded as donations. A total of P1.336 billion was sourced from the PSF that year, but P68.294 million went to financial assistance for soldiers wounded or killed in action.

“Accountability over the funds transferred/released to various government agencies/offices and to nongovernment/peoples’ organizations totaling P1.268 billion could not be established because these were recorded as ‘donations,’ contrary to the provisions of [COA circulars],” the audit agency said.

Because of this, the Office of the President did not have to require the agencies to submit reports on how they used the money, it said.

“Moreover, the recording of fund transfers to the donation expense account is irregular and contrary to the above-mentioned COA circulars because it released the management, particularly the source agency, from the responsibility of requiring the implementing agency to submit reports on checks issued and on disbursements as required,” it said.

The COA also noted that in lieu of the reports of disbursement and checks issued, the Office of Special Projects submitted financial and audit reports signed by its audit team.

But it still said that the nonsubmission of the reports of disbursement and checks issued “hinders the oversight function, duties and responsibilities of the auditor of the [source agency] and [implementing agency].”