Unused Priority Development Assistance Fund (PDAF) totaling P42.9 million and remaining with the Quezon City government as of year-end 2014 should be returned to the treasury, according to state auditors.
In a 2014 audit report on Quezon City, the Commission on Audit (COA) said it has recommended the return of the sum to the government.
The auditors reported that unused PDAF “in the amount of P42,909,191.50 as of December 31, 2014 was not fully reverted to the National Treasury contrary to the Supreme Court Decisions in GR Nos. 208566, 208493 and 209251 dated November 19, 2013.”
The High Court declared PDAF unconstitutional in 2013.
Based on the audit report, the local government received PDAF released by the Department of Budget and Management (DBM) through various lawmakers for specific purposes until 2013.
“As of December 31, 2014, the PDAF account had a balance of P200,495,937.40. Analysis of the PDAF showed that the total amount of P127,307,774.36 was transferred to NGOs/POs [non-government organizations/people’s organizations] but not yet liquidated,” the state auditors reported.
“On December 11, 2014, the city government made a partial reversion in the amount of P30,278,971.54 to the National Treasury leaving an unutilized balance of P42,909,191.50,” they said.
The City Accounting Department (CAD), according to COA, submitted a schedule of procurement documents in process and unpaid obligations in the amount of P45,407,004.75 which, it said, resulted in “over reversion of P2,497,813.25” to the National Treasury.
In an interview with the CAD personnel, the auditors found that the city had difficulty in determining if the funds were PDAF or from the Disbursement Acceleration Program (DAP).
The DAP has also been declared unconstitutional by the Supreme Court.