projects and determine whether the NGO/PO can satisfactorily undertake the
project under terms most advantageous to the beneficiaries, while taking into
consideration the cost effectiveness of the project.
15.32 Management has commented that the Terms of Reference (TOR) were included
in the Project Proposal of the NGO/PO and duly attached to the MOA.
15.33 Section 4.5.3 of COA Circular No. 2007-01 explicitly requires that the TOR,
which are integral to the execution of the project, be embodied in the MOA
itself. This ensures that all parties involved are fully aware of and agree to the
specific terms, conditions, and the requirements of the project.
15.34 Upon further review of the submitted proposal, we found that the required TOR
were not included in the Project Proposals. Moreover, the duly notarized MOA,
signed by both the Governor and the NGO/PO representative did not explicitly
state that the Project Proposal, including its TOR, was an integral part of the
agreement.
Entertainment Expenses amounting to ₱2.29 million Charged to Government Funds
16. A total of ₱2,290,000.00 for production services related to pageants, the State of
the Province Address (SOPA), and fireworks displays was improperly charged to
government funds, contrary to Section 343 of RA No. 7160. Additionally,
₱300,000.00 of the production services and fireworks expenses were
inappropriately categorized as Advertising Expenses, contrary to COA Circular
No. 2015-009 dated December 1, 2015, highlighting weaknesses in budgetary
control mechanisms.
16.1 Section 343 of RA No. 7160 provides that no money shall be appropriated, used,
or paid for entertainment or reception except to the extent of the
representation allowances authorized by law or for the reception of visiting
dignitaries of foreign missions, or when expressly authorized by the President
in specific cases.
16.2 The audit revealed that, contrary to the aforementioned provision of law, the
Provincial Government spent a total amount of ₱2,290,000.00 on production
services and fireworks display for various events in CY 2023. These events
included the holding of Hari ng Negros, Miss Negros Oriental, Gandang
NegOrense Transgender Pageant, and the State of the Province Address
(SOPA), as well as the fireworks display for the Grand Launch of the Tourism
Roadshow. The details and references for these expenditures are shown below:
Date DV No. Particular Amount
02/15/24 100(01)-2024-02-05488 Production services- Ms. ₱ 780,000.00
Negros Oriental
03/22/24 100(01)-2024-03-10941 Outdoor fireworks and 50,000.00
pyrotechnicians
04/01/24 100(01)-2024-03-09428 Production services- Hari ng 850,000.00
Negros
04/01/24 100(01)-2024-04-12039 Production Services-State of 250,000.00
the Prov. Address
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