Difference
Wt% Amount
Project with contract amount of ₱2,929,287.00
Agency’s Reported Accomplishment 66.191 ₱ 1,938,950.00
COA Verified Accomplishment 43.251 ₱ 1,266,950.00
Difference 22.94 ₱ 672,000.00
Total Difference ₱ 1,333,500.00
8.11. In view of the foregoing, the accessories and components of the solar lamp posts
with noted deficiencies were inappropriately included in the final billings and fully
paid, despite being non-compliant with contract specifications at the time of
inspection.
8.12. The premature certification of project completion, followed by full payment
despite the noted deficiencies, resulted in an overpayment amounting to
₱1,333,500.00. This undermines the credibility of the completion reports submitted
by the implementing office and raises concerns about the effectiveness of project
monitoring and validation procedures prior to payment. It also reflects lapses in
internal control, particularly in the verification and inspection processes, which
may expose public funds to the risk of loss or misuse.
8.13. We recommended that the Municipal Mayor and the Municipal Engineer
inform the contractor of the deficiencies noted and require them to either
undertake the necessary corrective works or to refund the amount
corresponding to the uncompleted and non-compliant items, totaling
₱1,333,500.00.
8.14. We further recommended and Management agreed to strengthen its
monitoring and validation procedures by ensuring that all work items are
physically verified and accounted for prior to certifying project completion
and processing of final payment.
8.15. The Municipal Engineer acknowledged that some accessories were not installed
due to unforeseen field conditions. He mentioned that, based on his initial
investigation, the contractor and the previous Municipal Engineer held detailed
discussions to assess the situation and determine the best course of action, which
included an alternative installation method and potential cost implications. He also
requested ample time to investigate the matter and develop the most effective and
cost-efficient solution. He added that he had already contacted the contractor to
discuss their plan of action.
8.16. The Auditor would like to remind Management to implement projects in
accordance with the approved plans and specifications. Any deviations must be
recommended by the Municipal Engineer and approved by the Municipal Mayor.
Upon project completion, the contractor must submit as-built plans reflecting all
deviations from the original plans.
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