Unutilized funds from BGCM not remitted to the National Treasury
15. Unutilized funds amounting to ₱1,059,540.30, received from the National
Government as financial assistance for the Typhoon Odette victims and Bayanihan
Grants to Cities and Municipalities (BGCM), were not returned to the National
Treasury, inconsistent with Section 3.8 of Department of Budget and Management
(DBM) Local Budget Circular (LBC) No. 125 dated April 7, 2020, and LBC No. 141
dated December 28, 2021, depriving the National Government from using the funds
to finance priority projects, programs and activities.
15.1 DBM LBC No. 125 dated April 7, 2020, prescribes the guidelines and procedures
for the release and utilization of the BGCM. The BGCM was distributed to cities
and municipalities to enhance their capacity to respond immediately to the
COVID-19 emergency. Item 3.9 thereof states that any funds remaining
unutilized after the lifting of the State of Calamity, as declared by Presidential
Proclamation, shall be reverted to the National Treasury by the recipient cities
and municipalities.
15.2 Additionally, on July 21, 2023, the President of the Philippines lifted the State of
Public Health Emergency under Proclamation No. 297.
15.3 Furthermore, DBM LBC No. 141 dated December 28, 2021, prescribed the
guidelines for the release and utilization of financial assistance to cities and
municipalities affected by Typhoon Odette, charged against the Fiscal Year 2021
Unprogrammed Appropriations of the National Government. Section 3.8 of the
LBC requires that any unutilized funds after December 31, 2022, shall be reverted
to the National Treasury by the recipient cities and municipalities. For this
purpose, unutilized funds refer to the balances of the amounts received by the
beneficiary cities and municipalities that were not disbursed by those cities and
municipalities.
15.4 An examination of the Municipality’s records revealed the following balances of
funds received from the National Government for BGCM and financial assistance
for Typhoon Odette victims as of December 31, 2024:
Particulars Amount
BGCM ₱ 285,995.30
Financial Assistance for Typhoon Odette Victims 773,545.00
Total ₱1,059,540.30
15.5 An inquiry with the Municipal Accountant revealed that the balances had been
overlooked and had not yet been remitted to the National Treasury, even after the
lifting of the State of Public Health Emergency on July 21, 2023, and the
distribution of financial assistance to Typhoon Odette victims in CY 2022.
However, the Municipal Accountant assured that he would coordinate with the
Municipal Treasurer to prepare a check payable to the National Government,
ensuring that the balance would be promptly remitted to the National Treasury.
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