12.6 The difference of 12.24 percent between the reported accomplishment and the
verified accomplishment for the above project, corresponding to an amount of
₱146,864.77, is shown below:
Difference
Wt% Amount
Agency’s Reported Accomplishment 100 ₱ 1,200,000.00
COA Verified Accomplishment 87.76 ₱ 1,053,135.23
Difference 12.24 ₱ 146,864.77
12.7 It is worth mentioning that the deficiency noted during the inspection was
incorporated into the final billing and has already been paid. As a result, the
Municipality incurred an overpayment amounting to ₱146,864.77.
12.8 The foregoing impairs the reliability of the completion reports submitted by the
implementing office and raises concerns about the effectiveness of project monitoring
and validation prior to payment. It also reflects lapses in internal controls, particularly
in the verification and inspection processes, which may expose public funds to the
risk of loss or misuse.
12.9 We recommended and the Municipal Mayor and the Municipal Engineer agreed
to inform the contractor of the deficiencies noted and require them to either
perform the needed remedy works or refund the amount corresponding to the
deficiency noted, totaling ₱146,864.77.
12.10 The Municipal Engineer explained that the discrepancy was due to a change in paint
color during project implementation, as suggested by certain municipal officials.
Management committed to try requesting a refund from the contractor. However, if
the contractor refuses, the municipal officials will shoulder the cost of the refund if
they are found to have caused the deficiency.
12.11 The Auditor would like to remind Management to strictly follow the approved plans
and specifications during project implementation. If any changes are to be considered,
prior approval should be sought.
LDRRMFIP
13. The Municipality's Local Disaster Risk Reduction and Management Council
(LDRRMC) and the LDRRM Officer (LDRRMO) did not include in the CY 2024
LDRRM Fund Investment Plan (LDRRMFIP) the list of projects and activities to be
funded by the unexpended LDRRMF from prior years amounting to
₱12,143,559.77, which is inconsistent with COA Circular No. 2012-002 dated
September 12, 2012, thereby risking delays in fund utilization during the year due to
the absence of prior appropriation and approval.
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