Furthermore, on May 30, 2024, the Provincial Government signed another
Memorandum of Agreement with PCL-Negros Oriental Chapter for the transfer
of an additional ₱7 million as a counterpart subsidy for various programs,
projects, and activities of the latter, as well as for its regular office operations.
13.4 On February 12, 2024 and on May 31, 2024, the Provincial Government
transferred the amount of ₱400,000.00 and ₱7 million, respectively, to the PCL-
Negros Oriental Chapter under the following references and particulars:
Date Check No. DV No. Amount
02/12/24 185679 100(01)-2024-02-05173 ₽ 400,000.00
05/31/24 193390 100(01)-2024-05-17025 5,000,000.00
05/31/24 193389 100(01)-2024-05-17326 2,000,000.00
Total ₽ 7,400,000.00
13.5 However, an examination of the disbursement vouchers (DVs) disclosed the
following deficiencies:
Fund released to PCL despite a ₽12,019,725.32 unliquidated balance
13.6 Section 3.1.1 of COA Circular No. 2012-001 dated June 14, 2012 requires,
among others, that a Certification by the Accountant that the funds previously
transferred to the Implementing Agency (IA) have been liquidated and
accounted for in the books prior to the release of additional funds.
13.7 Examination of the disbursement vouchers (DVs) revealed that the Provincial
Accountant was unable to issue a certification that the funds previously
transferred to the PCL had been liquidated and accounted for in the books
because the League still had an unliquidated balance of ₱17,230,000.00 as of
February 6, 2024, and ₱12,019,725.32 as of May 30, 2024, of which
₱6,600,000.00 pertains to financial aid to PCL Regional Office No. VII. The
Governor was informed of this deficiency by the Provincial Accountant and the
Provincial Treasurer through letters dated February 6, 2024 and May 30, 2024.
13.8 However, despite the lack of a liquidation report for the previous funds and a
certification from the Provincial Accountant, the DV was still approved for
payment. This indicates a breakdown in the control process, highlighting that
management failed to ensure that the previously released funds were used for
their intended purpose and that proper accounting of the amount provided was
reported by the League.
The fund was intended for programs under the responsibility of the executive
13.9 On December 19, 2023, the Sangguniang Panlalawigan issued Resolution No.
1298, authorizing the Governor to enter into and sign a Memorandum of
Agreement with the PCL-Negros Oriental Chapter on behalf of the province.
This agreement provides financial assistance to the League in the amount of
₱400,000.00 to support health care services and promote child and family
nutrition through feeding programs and the provision of various medical
equipment supplies.
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