The City Government granted financial assistance to cooperatives and various
organization totaling ₱4,296,000.00, which is inconsistent with COA Circular Nos. 2007-
001 dated October 25, 2007, because the requisites and procedures for the entitlement
and availment of funds were not complied with, thus exposing public funds to potential
misuse or irregularity.
38. Sections 34 and 36 of R.A. No. 7160 recognize the role of people's and non-governmental
organizations in the pursuit of local autonomy. Therefore, LGUs shall promote their
establishment and operation. With this premise, the LGU, through its local chief
executive and with the concurrence of the Sanggunian concerned, may provide assistance,
financial or otherwise, to such NGOs/POs, for economic, socially-oriented,
environmental, or cultural projects to be implemented within its territorial jurisdiction.
39. On October 25, 2007, the Commission issued COA Circular No. 2007-001 to provide
revised guidelines for the grant, utilization, accounting, and auditing of funds released to
NGOs/POs in view of the increase in the number of NGOs and POs seeking funds. This
is to ensure that the necessary controls are put in place in the release and utilization of
funds to promote transparency and accountability, including monitoring of the
implementation of projects funded out of the funds granted.
40. Section 3.0 of the said Circular also emphasizes that the guidelines established therein
shall apply to all funds granted to NGOs/POs, because all government funds granted to
them shall retain their character as public funds, in accordance with Section 4.1 of the
said Circular.
41. The review of the Reports of Checks Issued of the City revealed that in CY 2024, a total
of ₱4,296,000.00 were paid to various cooperatives and organizations as cash assistance
to the members of the group to be paid within seven months. Further verification and
based on the report submitted by the CCO, it was found out that the City appropriated the
amount of ₱6,829,000.00 for its Livelihood Development Programs under the Gender and
Development Fund and the CCO, as shown below:
Fund Source Appropriation Disbursed Balance
City Cooperative Office ₱4,829,000.00 ₱2,058,000.00 ₱2,771,000.00
Cooperatives 1,300,000.00
Small Business Operators 372,000.00
Small Scale Industry 50,000.00
Native Food Vendor 12,000.00
Various Organizations 324,000.00
Gender and Development 2,000,000.00 2,238,000.00 (238,000.00)
Hog Raisers 198,000.00
Small Business Operators 150,000.00
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