The Commission on Audit (COA) questioned Light Rail Transit Authority (LRTA) officials for commingling P2.2 billion funds under the Disbursement Acceleration Program (DAP) with its operating funds.
Based on COA’s 2013 audit report released last week, two out of three funds released to the LRTA under the 2011 Stimulus Fund went to the agency’s account at Land Bank of the Philippines (LBP) which also held its budget for operating expenses and capital outlay.
The amounts “were deposited in the savings account for operating expenses, hence co-mingled with the regular funds of LRTA. No disbursement from these funds was reported for CY 2013,” COA said.
State auditors warned that keeping the DAP funds and operating funds in one account could cause documentation problems once disbursements are made out of the transferred sums.
“For easier monitoring of fund disbursements and reconciliation of funds under the CY 2011 and CY 2013 Stimulus Funds, and considering the materiality of the funds received under DAP, we recommend that management open a separate bank account for these DAP funds,” COA said.
The first fund release in June 2013—P385.03 million—was initially invested in a special savings account at the Development Bank of the Philippines-Marikina and earned a P2.13 million interest as of end-2013.
A P504.79-million transfer followed in December 2013 that went to LRTA’s LBP account.
Later on, the sum deposited at DBP was moved to LBP for a total of P889.82 million, COA said.
The third subsidy under DAP worth P1.31 billion released to LRTA early this year also ended up in the agency’s LBP account.
“The amount was confirmed received by the LRTA on January 8, 2014 upon transfer to its Savings Account maintained for its operating expenses where the funds for CY 2011 DAP was also deposited,” COA said.