State auditors have told Quezon province to remit P27.423 million unused Priority Development Assistance Fund (PDAF) to the national treasury, according to a 2013 audit report.
Quezon province, meanwhile, assured compliance with the audit recommendations.
“Unutilized balances of PDAF of P27.423 million were not reverted to the National Treasury, although the programs/projects for some of these funds received were already implemented, while others remained dormant for more than three years, contrary to Executive Order [EO] No. 431 and Supreme Court Decision dated May 30, 2005 and November 19, 2013, respectively,” the Commission on Audit (COA) said in the report.
EO 431 mandates the reversion of dormant accounts, unnecessary special and trust funds to the general fund of the government.
Auditors were also referring to the Supreme Court decision on November 19, 2013 which declared PDAF unconstitutional.
“[H]ence, funds received prior to said date and not covered by Notice of Cash Allocation, but only by Special Allotment Release Order whether obligated or not shall not be disbursed, instead, are reverted to the unappropriated surplus of the general fund of the national government,” state auditors said.
“Funds downloaded to LGUs [local government units]from NGAs [national government agencies]had specific purpose for which these were granted, hence, any unutilized funds or for failure of the recipient LGU to implement the project within a specified period, shall be reverted to the National Treasury,” they explained.
Auditors said that verification of the account Due to Other NGAs revealed that P27.423 million of the total P265.557 million represented unused balances of PDAF were not reverted to the National Treasury, although the programs/projects for some of these funds received were already implemented, while others remained dormant for more than three years.
“We recommended that the Provincial Governor advise the Provincial Treasurer to remit the unutilized PDAF of P27.423 million to the National Treasury,” the state auditors said.
In the same audit report, Quezon province assured compliance with the audit recommendation to remit P980,960.26 unused Disbursement Acceleration Program (DAP) funds to the national treasury.