P86.9-M DOH deals may be illegal–COA


THE Department of Health (DOH) has received funds from various government institutions amounting to P86.869 million without the mandated memorandum of agreement (MOA), state auditors said.

This clouded the legality, validity and propriety of the fund transfers because it will be difficult to determine how the funds were used, the auditors said.

In a 2013 audit report on the DOH, the Commission on Audit noted (COA) noted that COA Circular 94-013 was not followed. The circular provides that fund transfers by the Source Agency (SA) to the Implementing Agency (IA) shall be covered, among others, by a MOA or its equivalent.

The MOA spells out the purpose of the fund and how it will be utilized and disposed of for liquidation, reporting and audit purposes, COA said.

“The grants and donations received by the DOH, particularly from government institutions amounting to P86,868,711.43 (or 90 percent of the donations received), were not covered by MOA or its equivalent that provides the terms and conditions regarding the receipt, utilization, liquidation and audit of the said funds,” auditors said.

In prior years, the DOH received P28,957,195, which consisted of P16.75 million from the Philippine Charity Sweepstakes Office (PCSO), P10 million from the Philippine Health Insurance Corp. (PHIC), P90,000 from the Department of Environment and Natural Resources (DENR), P100,000 from the Philippine International Convention Center (PICC), P2 million from Bangko Sentral ng Pilipinas (BSP), P11,150 from the National Epidemiology Center (NEC), and P6,045 from the National Center for Health Facility Development (NCHFD).

In 2013, the DOH received a total of P57,911,516.43 from various government agencies, which include P1.876 million from the Presidential Management Staff, P35,516.43 from the Department of Transportation and Communications (DOTC), P50 million from PCSO, P2.5 million from the Government Service Insurance System (GSIS) and P3.5 million from BSP.

“Likewise, the account due from GOCCs under Fund 101, disclosed that funds transferred by the DOH Central Office to five Government Owned and Control Corporations (GOCCs), for the implementation of various projects amounting to P107,108,892.36, were not covered by a MOA or its equivalent, contrary to COA Circular No. 94-013,” auditors said.

The recipients were the Lung Center of the Philippines or LCP (P67,824,785), National Kidney and Transplant Institute or NKTI (P24,703,422.99), Philippine Children’s Medical Center or PCMC (P500,000), Philippine Heart Center for Asia or PHCA (P500,000) and Philippine Institute of Traditional and Alternative Health Care or PITAHC (P13,580,684.37).

The COA said the fund transfers were only supported and implemented by the issuance of Department Orders duly signed by the DOH Secretary.

The DOH commented that fund transfers are covered by sub-allotment guidelines that guide the recipient how the funds will be disbursed.

It added that effective immediately, all fund transfers shall be supported by a MOA and that it has already requested the PCSO, GSIS and BSP for the submission of MOA.


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