Transfer of ₱3.5 million to NGOs Non-Compliant with COA Circular No. 2007-001
15. The transfer of government funds to Non-Governmental Organizations (NGOs)
totaling ₱3,500,000.00 is not consistent with COA Circular No. 2007-001 dated
October 25, 2007 because the requisites and procedures for the entitlement and
availment of funds were not complied with, while ₱2 million were granted for the
NGOs asset acquisition, contrary to Section 305(b) of RA No. 7160, casting doubts
on the propriety of the transactions.
15.1 On October 25, 2007, the Commission issued COA Circular No. 2007-001 to
provide revised guidelines for the grant, utilization, accounting, and auditing of
funds released to Non-Governmental Organizations/People’s Organizations
(NGOs/POs) in view of the increase in the number of NGOs and POs seeking
funds. This is to ensure that the necessary controls are put in place in the release
and utilization of funds to promote transparency and accountability, including
monitoring of the implementation of projects funded out of the funds granted.
15.2 Post-audit of the following disbursement vouchers (DVs) on the Provincial
Government’s grant of financial assistance to NGO/POs in CY 2024, which
amounted to ₱3,500,000.00, revealed that the requisites and procedures for the
entitlement and availment of government funds provided under the
aforementioned COA Circular were not adhered to, as discussed below:
Date Check No. DV No. Amount
02/27/24 186602 100(01)-2024-02-7826 ₱ 500,000.00
02/27/24 186626 100(01)-2024-02-7828 500,000.00
02/29/24 186812 100(01)-2024-02-8203 500,000.00
02/29/24 186813 100(01)-2024-02-8209 500,000.00
02/29/24 186814 100(01)-2024-02-8211 500,000.00
03/05/24 187369 100(01)-2024-03-8589 500,000.00
03/15/24 1888815 100(01)-2024-03-10450 500,000.00
Total ₱ 3,500,000.00
Priority projects were not pre-identified and publicized
15.3 Section 4.5.1 of the Circular provides that the government organization (GO)
shall identify the priority projects under its Work and Financial Plan (WFP)
which may be implemented by the NGO/PO, including their respective
purpose(s), specifications and intended beneficiaries as well as the time frame
within which the projects are to be undertaken. To ensure transparency, this
information shall be made public via newspapers, agency websites, bulletin
boards and the like, at least three months prior to the target date of
commencement of the identified projects.
15.4 The examination of the aforementioned DVs revealed, however, that the grants
were not supported with a list of priority projects that may be implemented by
the NGO/PO. Additionally, the required publication of these projects in the
newspaper, agency website, or bulletin board was not observed. An approved
summary of budget requirements detailing the items of expenditure or
disbursement to be incurred in the program or projects as required in the
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