The Department of Social Welfare and Development (DSWD) failed to liquidate P10.2-billion fund transfers to national government agencies (NGAs), local government units (LGUs) and government-owned and -controlled corporations (GOCCs), according to the Commission on Audit (COA).
In a 2013 report released only on Tuesday, state auditors said implementing agencies (IAs) were not prompt in the submission of financial and accomplishment reports to inform on the status of funded programs and projects.
Auditors also reported that roughly P1.815 billion in Disbursement Acceleration Program (DAP) funds or 69.41 percent of the funds of the Office of the Secretary was moved to the Commission on Higher Education (CHed) and Technical Education and Skills Development Authority (Tesda).
The amount was broken down into P500 million to CHed for the Students Grants-in Aid for the Poverty Alleviation for State Universities and Colleges (SUCs) and P1.315 billion to Tesda for the Government Internship Program.
“To date, the amounts remained unliquidated without any recorded liquidation to document disbursements of the funds transferred,” COA said.
“The amount also included P110.061 million transferred to the AFP [Armed Forces of the Philippines]-Nadescom [National Development Support Command] for the construction of 108 Day Care Centers and 100 Modified Shelters to include the cash for work component in the construction.”
Other government agencies that received funds from DSWD included the National Food Authority and several state hospitals.
“In such conditions, the inability of the IAs to submit LRs [liquidation reports]created doubt on the proper implementation of the programs involved as well as in the proper utilization of funds. This also exposes funds to unauthorized use,” the auditors said.
COA directed the DSWD to demand proper accounting of unliquidated balances of fund transfers by requiring the submission of liquidation reports to substantiate fund disbursements. It also told the DSWD to “stop the practice of granting additional fund transfers unless previous fund transfers are liquidated to prevent accumulation of balances.”