Technical Inspection: Improvement of Municipal Hall
12. The infrastructure project titled Improvement of Municipal Hall (Phase I), with a
total contract cost of ₱1,200,000.00, was reported as 100% complete and fully paid
in CY 2023. However, an inspection by a COA Technical Audit Specialist disclosed
that the project was only 87.76% complete, resulting in an overpayment of
₱146,864.77.
12.1 In CY 2022, the Municipality implemented the project titled Improvement of
Municipal Hall (Phase I), with a total contract amount of ₱1,200,000.00.
12.2 The project was reported to be 100% complete as of February 11, 2023, based on the
Statement of Work Accomplished (SWA) attached to the payment of the final billing
covered by Check No. 1559432 and Disbursement Voucher (DV) No. 100-2023-03-
401 dated March 21, 2023.
12.3 Furthermore, as indicated on the Certificate of Final Inspection and Completion dated
February 27, 2023, signed by the Municipal Engineer and Municipal Mayor, the
project was completed in accordance with the specified technical engineering
specifications set forth in the contract documents.
12.4 However, an ocular inspection conducted by the COA Technical Audit Specialist
(TAS) on October 31, 2024, revealed that the project was only 87.76 percent
complete, contrary to the 100 percent completion stated in the Certificate of Final
Inspection and Completion dated February 27, 2023, prepared by Management. The
discrepancy between the reported and verified accomplishments is detailed in the
table below:
Agency’s Reported
Work Items Involved COA Verified Accomplishment
Accomplishment
% %
Description Amount Completed Wt% Completed Wt. % Amount
E. Direct Cost
Carpentry Works ₱ 193,470.33 100 16.123 100 16.123 ₱ 193,470.33
Masonry Works ₱ 101,789.00 100 8.482 100 8.482 ₱ 101,789.00
Concrete Works ₱ 29,410.00 100 2.451 100 2.451 ₱ 29,410.00
Painting Works ₱ 233,659.94 100 19.472 37 7.233 ₱ 86,795.16
Steel/Welding Works ₱ 235,395.00 100 19.616 100 19.616 ₱ 235,395.00
Roofing Works ₱ 208,782.00 100 17.399 100 17.399 ₱ 208,782.00
F. Indirect Cost
OCM. Profit, VAT ₱ 197,493.74 100 16.458 100 16.458 ₱ 197,493.74
Total ₱ 1,200,000.00 100 87.76 ₱ 1,053,135.23
12.5 The inspection report from the COA Technical Audit Specialist (TAS) for the above
project stated that during the inspection, an area of 817.92 sq. m. could no longer be
verified due to a change in color that occurred during the implementation of the Phase
2 contract, six months after the completion of Phase 1. This observation, with a
corresponding cost of ₱146,864.77, was not included in the COA Verified
Accomplishment.
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