g. Institution of legal action by the GO against the defaulting NGO/PO
which fails to complete a project covered by the MOA, or for a
material violation of the provisions of the MOA or of this Circular,
and in any of these cases, its subsequent disqualification from
applying for another project in any other GO;
h. In case of the dissolution of the recipient NGO/PO, voluntary or
involuntary, the lien of the granting GO on its assets, in accordance
with existing laws, to the extent of the unexpended or unutilized
portion of the fund;
i. Maintenance by the NGO/PO of a separate savings/current account
for each fund received from the GO; and
j. The return by the NGO/PO to the granting GO of any amount not
utilized to complete the project, including interest, if any.
15.15 The requirements in the release and utilization of GO funds transferred to
NGOs/POs are necessary controls that the Provincial Government must
consider before approving any fund transfer to NGOs/POs. This is because the
GO fund granted to the NGO/PO retains its character as a public fund. Thus, it
is imperative that there is an approved MOA with comprehensive terms of
reference before any release of funds to safeguard government funds from
wastage or misapplication.
Funds amounting to ₱2 million were granted for the NGOs asset acquisition
15.16 Section 305(b) of RA No. 7160 provides the governing fundamental principles
in the financial affairs, transactions, and operations of local government units,
which state that the local government funds and monies shall be spent solely for
public purposes.
15.17 Despite this legal requirement, the Provincial Government granted a total of ₽2
million in financial assistance to four (4) NGOs allocated for the purchase of a
Solar Energy 8.19 KWH Hybrid on/off grid system, materials for the NGOs
Training Space, establishment of tricycle motor parts and service center, and a
service vehicle.
15.18 The project proposal states that solar energy system aims to support the
livelihood programs of the Center by addressing the frequent power outages that
have disrupted its catering services. Additionally, the budget for construction
materials and supplies is allocated to create a child- and youth-friendly space,
which will further improve the NGOs training programs.
15.19 On the other hand, the objective of the establishment of a tricycle motor parts
and service center is to provide members of the association with additional
livelihood opportunities and access to affordable, high-quality motor parts.
Meanwhile, the acquisition of a service vehicle is intended to help the
cooperative reach target beneficiaries and newly organized cooperatives in
remote areas of the Province.
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