STATE auditors said the unliquidated fund transfers at the Department of Public Works and Highways (DPWH) reached P9 billion.
In a report, the Commission on Audit (COA) said P9.4 billion fund transfers to various national government agencies (NGAs), government-owned and -controlled corporations (GOCCs) and local government units (LGUs) remained unliquidated as of 2013.
Auditors said P4.4 billion of the amount had been outstanding for over two years. Under the law, the implementing agency is required to submit a report to the source agency on the use of funds or the actual project expenses.
“Due to management’s lax monitoring, continuous release of additional fund transfers without first requiring the full liquidation of the previous releases, and inadequate efforts to identify the problems that caused the failure of the implementing agency to liquidate the said fund transfers on time and identify solutions that will address this perennial problem, the amount of unsettled fund transfers as of December 31, 2013 has accumulated to P9 billion,” auditors said.
The non-liquidation of fund transfers “adversely affected the reliability of the reported receivables since the funds could have already been spent for projects that were implemented in prior years but the corresponding assets/expenses remained unrecognized in the books of the DPWH,” they said.