11.20 The lack of an internal BAC does not exempt the PCL from following procurement
laws. In such cases, coordination with the LGU or other authorized procurement
entities should be undertaken to ensure the lawful disbursement of public funds.
11.21 Although past practices may not have been flagged, the absence of prior audit
findings does not mean there is no non-compliance. This observation is issued to
correct issues and guide future actions based on updated interpretations and
enforcement of relevant laws. Good faith does not excuse the need for legal
compliance, especially when public funds are involved.
11.22 Liquidation alone does not satisfy the requirements of transparency and
accountability. Complete supporting documents—including Disbursement
Vouchers, Purchase Requests, Purchase Orders, Acceptance and Inspection
Reports, and Activity Designs—are essential to validate the legality and propriety
of expenditures.
Unutilized funds from BGCM not remitted to the National Treasury
12. Unutilized funds from Bayanihan Grants to Cities and Municipalities (BGCM)
totaling ₱21,436.43 were not remitted to the National Treasury despite the lifting
of the State of Public Health Emergency on July 21, 2023, contrary to Item 3.9 of
DBM Local Budget Circular (LBC) No. 125 dated April 7, 2020, depriving the
National Government from using the funds to finance priority projects, programs
and activities.
12.1 DBM LBC No. 125 dated April 7, 2020, prescribes the guidelines and procedures
for the release and utilization of the BGCM. The BGCM was released to cities and
municipalities to enhance their capacity to respond immediately to the COVID-19
emergency. Item 3.9 thereof provides that 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.
12.2 Moreover, on July 21, 2023, the President of the Philippines lifted the State of
Public Health Emergency under Proclamation No. 297.
12.3 An examination of the records revealed that the Municipality received
₱14,723,785.00 from the National Government as BGCM on April 16, 2020.
Between CY 2020 and CY 2021, ₱14,104,709.34 of this amount was utilized,
leaving a balance of ₱619,075.66 at the end of CY 2021. A review of the General
Ledger (GL) showed no recorded transactions from 2021 until July 21, 2023, when
the State of Public Health Emergency was lifted. Furthermore, an analysis of the
GL confirmed that the balance remained outstanding as of December 31, 2024.
The Municipal Accountant disclosed that the unutilized balance was not yet
adjusted for the annual depreciation of equipment. Hence, the actual cash balance
of the fund is ₱21,436.43.
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