COA flags MMDA for ₱1.02-B unused funds

MANILA, Philippines — The Commission on Audit (COA) flagged the Metropolitan Manila Development Authority (MMDA) for leaving P1.028 billion in unobligated funds from its 2024 budget due to delays in procurement and project implementation.

Based on the MMDA’s 2024 audit report released this month, the agency disbursed only 75.25 percent of its total allotments or 82.42 percent of its obligations by year-end, leaving more than P1.028 billion in unused appropriations. 

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“Budget under-utilization was mainly due to delays in project implementation and procurement, which hindered the timely delivery of services, delayed socio-economic benefits for Metro Manila residents, and increased the risk of fund reversion to the General Fund,” the report said.

Among the projects affected was the Metro Manila Flood Management Project Phase 1, where budget utilization was slow.

The MMDA’s project management office cited delays in onboarding consultants; COVID-19 restrictions that limited community engagement and procurement; frequent changes in task team leaders, causing inconsistent guidance; multiple shifts in MMDA leadership that altered project priorities; and administrative factors such as delivery extensions, contract extensions, time suspensions, and variation orders.

These issues, according to COA, impacted the disbursement of 2023 continuing appropriations, delayed the completion of sub-projects worth P470.6 million, and risked incurring financial costs from undisbursed loan balances, ultimately slowing the delivery of flood management benefits.

With this, state auditors cited Section 2 of Presidential Decree No. 1445, emphasizing that all public funds must be managed efficiently, economically, and effectively.

They also referenced Section 3.3 of Department of Budget and Management National Budget Circular No. 592, which provides that unused appropriations are only valid for a set period, after which they may lapse and revert to the General Fund.

In response, the MMDA agreed to conduct regular assessments of disbursement performance, enhance coordination with contractors, and institute a more proactive financial monitoring system to ensure more efficient utilization of allocated funds. /mr