11.9 We recommended and Management agreed that the CAO should see to it
that disbursements for payment of salaries and wages of casual and job order
personnel are completely supported with proper documents, as prescribed
under COA Circular 2012-001 dated June 14, 2012, before payments are
made to avoid issuance of Notices of Suspension.
Unutilized LDRRMF- Special Trust Fund (STF) totaling ₱2,502,410.50 not yet reverted to
General Fund (GF)
12. The unutilized portion of the LDRRMF in the STF for CYs 2010 to 2017,
amounting to P2,502,410.50, has not been reverted to the GF even after the lapse
of the five-year period, primarily due to insufficient monitoring of obligations and
corresponding liquidations, contrary to Item 5.1.13 of COA Circular No. 2012-002
dated September 12, 2012, thereby preventing the City from making available the
said funds for other social services.
12.1 Item 4.4 of COA Circular No. 2012-002 dated September 12, 2012, provides that
unexpended LDRRMF shall accrue to STF solely for the purpose of supporting
disaster risk reduction and management activities of the LDRRMC within the
next five (5) years.
12.2 As such, Item 5.1.13 thereof specifies that any unutilized amount after five (5)
years shall revert to the unappropriated surplus of the GF and shall be available
for other social services after subsequent enactment by the local sanggunian.
12.3 Our review of the City’s financial statements and schedules for CY 2024 revealed
that the unutilized balance of the LDRRMF in the STF for CYs 2010-2017
amounting to P2,502,410.50 was not reverted to the GF even after the lapse of the
five-year period, as presented on the below:
Year Amount
2017 ₱ 542,491.33
2016 141,093.90
2015 477,609.03
2014 119,925.00
2013 62,455.40
2012 563,099.25
2011 496,186.72
2010 99,549.88
Total ₱ 2,502,410.51
12.4 This deficiency was previously noted in the CY 2020 AAR. At that time, it was
disclosed in the Notes to FS that the transfer of unobligated LDRRMF balances,
held in trust and due for transfer to the GF, was pending because of unpaid
obligations or unprocessed liquidations.
12.5 However, a comparison with the financial statements and other schedules, as
presented in the AARs for the last five (5) years, reflected the following STF
balances:
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