B. OTHER FINANCIAL RELATED ISSUES
Unrecouped Advances to Contractors - ₱5,072,122.24
2. The City was not able to recouped advance payments made to contractors
amounting to ₱5,072,122.24 for completed and terminated projects inconsistent
with Section 4.2 of the Revised IRR of R.A. No. 9184, thus resulting to possible loss
of government funds.
2.1 The procuring entity is authorized to make an advance payment to the contractor
in an amount not exceeding fifteen percent (15%) of the total contract price upon
a written request of the contractor.
2.2 Section 4.3 of Annex E of the Revised Implementing Rules and Regulations of
R.A. No. 9184 provides that advance payment shall be repaid by the contractor
by deducting fifteen percent (15%) from his periodic progress payments a
percentage equal to the percentage of the total contract price used for the advance
payment.
2.3 As of December 31, 2024, the Advances to Contractors account has an
outstanding balance of ₱5,987,659.11 (Appendix G). The audit disclosed that this
balance pertains to 15% advance payments made in CYs 2020 and prior years and
CYs 2022 to 2024, for projects that have either been completed, terminated or
with unresolved right of way problems as reflected in the Report of Government
Projects/Programs/Activities as of December 31, 2024, which was submitted by
the City Engineer. The unrecouped amounts are listed below:
Status per Report on
Particulars Amount PPAs and Reply on
Query
15% Mobilization of 2CL ₱147,225.00 Not in the report/ 100%
Classrooms, Brgy. Mabunga Completed
15% Mobilization of 2CL 226,500.00 Reverted/ Contract
Classrooms, Brgy. Terminated
Plagatsanon
15% Mobilization of 2CL ₱ 54,959.00 Not in the report/ 100%
Classrooms, Brgy. P. Completed
Zamora
Concreting of Brgy Road, 149,673.75 Not in the report/ 100%
Brgy. Humayhumay Completed
Concreting of Brgy Road, 149,673.75 Not in the report/ Contract
Brgy. Hilaitan Terminated
Concreting of Brgy Road, 149,673.75 Not in the report/ 100%
Brgy. Binobohan Completed
Imp. Of Multi-purpose Hall, 19,261.87 Not in the report/ Contract
Brgy. Nagsaha Terminated
43
