State auditors have asked the Housing and Urban Development Coordinating Council (HUDCC) to put more effort in requiring concerned local to government units (LGUs) to submit liquidation reports as settlement of fund transfers.
In a 2013 audit report on HUDCC, the Commission on Audit (COA) said that fund transfers to 28 LGUs totaling P28.32 million remained unliquidated as of December 31, 2013 despite constant reminders.
“The non-submission of the required liquidation reports by the LGUs was contrary to the provisions of COA Circular No. 94-013 dated December 14, 1994, thus, casting doubt on whether the projects were implemented or the funds were utilized for the purpose for which the same were transferred,” COA said.
In memorandum order 74 in 2002, the HUDCC was directed to implement post-proclamation activities in areas declared as socialized housing sites, which included non-core properties of the Philippine National Railways (PNR).
HUDCC had a sum allocated in its yearly budget for survey work of proclaimed lands for socialized housing under the General Appropriations Act (GAA).
“Since HUDCC recognized that the effective implementation and disposition of the proclaimed properties required the active participation of the LGUs, it entered into MOAs with different LGUs from 2005-2013 for the financing, conduct and approval of all survey works and eventual titling of the lots in favor of the intended beneficiaries in areas proclaimed as socialized housing sites,” state auditors said.
Under the MOA or memorandum of agreement, HUDCC will transfer to the LGUs the amount equivalent to the estimated total cost of the survey in the form of cash advance.
The LGUs were required to submit to the HUDCC documents including progress reports and official receipts backing payments made for the survey as well as a liquidation report; certificate of project completions and; report of disbursements duly verified by the concerned auditor to liquidate the funds transferred by HUDCC with a Statement of Work Accomplished duly certified by the LGU.
“As of December 31, 2013, the balance of the account Due from LGUs amounted to P28.32 million,” auditors said.