50. Further, Section 6 of COA Circular No. 2007-001, the release of funds to NGOs/POs is
subject to specific limitations to ensure proper utilization. Notably, funds shall not be
released prior to the signing of the MOA. Furthermore, the funds granted are prohibited
from being used for investments such as money market placements or time deposits, cash
advances for officials unless directly related to project implementation, payment of
salaries, honoraria, or allowances for personnel not involved in the project, purchase of
supplies, materials, equipment, or motor vehicles of the GO, and acquisition of assets by
the NGO/PO unless explicitly necessary for the project and stipulated in the MOA. These
restrictions are designed to safeguard public funds and ensure they are utilized solely for
their intended purposes.
51. We recommended and Management agreed to strictly comply with the guidelines
and procedures established under COA Circular No. 2007-001 in the availment,
release and utilization of all funds released to non-governmental organizations
and/or people’s organizations, hence, non-compliance may result to the issuance of
a Notice of Disallowance by this Office.
Local Disaster Risk Reduction and Management Fund (LDRRMF)
Various disbursements such as food allowance in connection with Pasayaw Festival,
supplies for the prevention of epidemic disease and anti-rabies vaccine, among others,
amounting to ₱1,380,227.75 were improperly charged to LDRRMF inconsistent with
Section 5.0 of National Disaster Risk Reduction and Management Council (NDRRMC),
Department of Budget and Management (DBM), and Department of the Interior and
Local Government (DILG) Joint Memorandum Circular NDRRMC-DBM-DILG JMC
No. 2013-1 dated March 25, 2013, thereby reducing the funds available for disaster risk
reduction and management activities.
52. The NDRRMC-DBM-DILG JMC No. 2013-1 dated March 25, 2013, serves as guidelines
on the LDRRMF allocation and utilization. It explicitly provides the necessary measures
to avoid, lessen, or limit potential adverse impacts of hazards and related disasters. It also
enables governments, communities, and individuals to effectively anticipate and manage
emergencies and achieve orderly transitions from response to sustained recovery.
53. Section 5.0 of the JMC defines disaster prevention and mitigation, preparedness,
response, rehabilitation, and recovery. It also enumerates the programs/projects/activities
(PPAs) under the four thematic areas of disaster risk reduction and management for which
the LDRRMF may be utilized. Likewise, DILG Memorandum Circular (MC) No. 2012-
73 dated April 17, 2012, lists the PPAs for which the LDRRMF may also be used.
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