8. The accuracy of the Gain on Sale of PPE amounting to ₱1,445,031.25 from the
derecognition of disposed PPE items could not be ascertained, as various unserviceable
properties included in the disposal were not properly derecognized in the books of
accounts.
Significant Audit Observations and Recommendations
The following are the significant observations and recommendations in the audit and/or
evaluation of the operations of the Province for Calendar Year 2024. These, and other audit
observations discussed by the Audit Team with Management in an exit conference on
March 18, 2025, are fully presented in Part II of this Report.
1. Feasibility studies for seven infrastructure projects amounting to ₱5.850 billion,
which were funded through loans, were neither prepared nor submitted to the
Audit Team, thereby raising concerns about whether the projects’ viability and the
optimal utilization of resources were assessed prior to their implementation.
We recommended that Management conduct in-depth analyses and a comprehensive
feasibility study, including assessments of financial viability, socio-economic
feasibility and management feasibility, to evaluate compliance with the purpose and
intent of Section 296(b) of RA No. 7160 and Section 2 of PD No. 1445. Additionally,
the study must address the viability and necessity of the project, the financial
sustainability of the loan repayment, and the overall impact on the Provincial
Government’s finances.
2. The ₱49,870,000.00 Socio-Civic Projects Fund (SPCF) from the Office of the
President for farmers, fisherfolk, and other marginalized families severely
affected by the El Niño may not have reached its intended beneficiaries, as the
supporting documents do not show that the Department of Agriculture (DA) and
Department of Social Welfare and Development (DSWD) was involved in
identifying the beneficiaries, while the supporting papers submitted pertained to
the “Ayuda sa Kapos ang Kita Program” (AKAP), a separate DSWD initiative to
low-income families and individuals facing economic hardships due to inflation,
which may render the disbursements illegal.
We recommended that Management submit the supporting documents to prove that the
SCPF provided by the Office of the President was distributed to its intended
beneficiaries, the farmers, fisherfolk, and other marginalized families severely affected
by the El Niño phenomenon, in order to ensure that the objectives of the grant were
achieved.
3. The necessity and propriety of hiring Force Multipliers for Task Force SAGAR,
amounting to ₱16,595,000.00 is questionable due to the lack of clearly specified
duties, functions, and expected outputs in the contract, as well as proof of technical
skills and justification for the need to hire these personnel, thus may result in the
possible wastage of government funds.
We recommended that Management submit a justification for the employment of Force
Multipliers and the creation and maintenance of these Task Forces, as well as detailed
description of their specific duties, functions and expected outputs.
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