4.6 Upon inquiry, the LDRRM Officer (LDRRMO) stated that a separate LDRRMFIP
was made at the beginning of the year for PPAs chargeable to the STF. The
LDRRMO further explained that due to numerous PPAs from prior years, it is
preferable to list them separately to avoid confusion.
4.7 A review of the City’s AIP for CY 2024 revealed that the LDRRM-related PPAs
for the current year are included, while projects charged to the unexpended
LDRRMF from previous years are not reflected in the AIP. This indicates that the
separate list of PPAs chargeable to the STF, proposed by the LDRRMO, was not
considered by the LDRRM Council during the preparation of the annual
LDRRMFIP and the AIP. This may also suggest the absence of coordination among
the LDRRMO, LDRRMC, and other offices involved in preparing and
implementing the AIP.
4.8 It is emphasized that the unutilized balances of the LDRRMF from prior years in
the STF may only be released and utilized upon the inclusion of its PPAs in the
annually prepared LDRRMFIP, which serves as the basis for the preparation of the
AIP, to be approved by the local Sanggunian. This necessitates an annual review
and update of the LDRRMFIP to include PPAs that are to be funded from the
current and unexpended balances of the LDRRMF from previous years.
4.9 The non-inclusion of unexpended balances in the LDRRMFIP and AIP for CY
2024 may lead to inefficiencies in the allocation and utilization of funds for disaster
risk reduction and management efforts. It could also result in missed opportunities
for disaster resilience and preparedness initiatives, considering that a substantial
amount of funds could have been made available to the City had the unexpended
balances from previous years been considered.
4.10 This observation was communicated through Audit Observation Memorandum
(AOM) No. 2025-01(24) dated March 11, 2025.
4.11 We recommended and Management agreed that the LDRRMO and the
LDRRMC:
a. Integrate the separate LDRRMFIP into the regular AIP to streamline the
management and allocation of funds while ensuring transparency and
accountability in the utilization of the LDRRMF;
b. Foster closer coordination and communication between the LDRRMO and
the departments responsible for the Annual Investment Plan to align the
objectives of the separate LDRRMFIP with the overall goals and priorities
outlined in the regular AIP;
c. Establish an efficient monitoring system to ensure the separate
LDRRMFIP complies with the requirements outlined in COA Circular No.
2012-002;
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