16.17 We also recommended and the Provincial Accountant agreed to record
expenditures using the appropriate account in accordance with COA
Circular No. 2015-009 dated December 1, 2015, to reflect the accurate
amount of the affected accounts for the period ended.
16.18 Further, we recommended and the Provincial Budget Officer agreed to
exercise due judgment in the account classification based on the nature of
the transactions, specified conditions, and the purpose to ensure that
obligations are charged to appropriate accounts.
Contract of Service Personnel Perform Duties Unrelated to Contract Terms
17. Certain personnel under the Contract of Services (COS) performed duties
unrelated to their responsibilities as outlined in the Contract of Agreements, of
which salaries totaling ₱79,526.77 were improperly charged to the Local Disaster
Risk Reduction and Management Fund (LDRRMF), contrary to Section 4.0 of
NDRRMC, DILG, DBM and CSC Joint Memorandum Circular No. 2014-1,
thereby reducing the funds available for disaster risk management activities.
17.1 Section 4.0 of NDRRMC, DILG, DBM and CSC Joint Memorandum Circular
No. 2014-1 dated April 4, 2014 specifies that the budgetary requirements for
personal services, maintenance and other operating expenditures, as well as
capital outlay for the Local Disaster Risk Reduction Management Office must
be sourced from the General Fund of the Local Government Unit (LGU) in
accordance with Section 76 of Republic Act No. 7160. Furthermore, it states
that the other maintenance and operating expenses, and other capital outlay
requirements of the LDRRMO, for implementing the DRRM projects, shall be
charged to the LDRRMF, subject to the provisions of Joint NDRRMC, DBM,
and DILG Memorandum Circular No. 2013-1 and COA Circular No. 2012-002.
17.2 Anent thereto, Section 5.0 of NDRRMC, DBM and DILG JMC Circular No.
2013-1 dated March 25, 2013, outlines the specific projects and activities for
which the LDRRMF may be utilized.
17.3 On a test basis, we conducted a post-audit of disbursement vouchers for the
period from January to August 2024. We observed that the salaries and wages
of some COS personnel were charged to the LDRRM Fund for specific
infrastructure projects assigned to them for implementing DRRM initiatives.
However, an examination of the contracts of certain personnel revealed the
following deficiencies:
Services rendered were inconsistent with contractual duties and responsibilities.
17.4 Section 517 of the GAAM, Volume I, provides that agencies may enter into
contracts with individuals or organizations, both public and private, subject to
applicable laws and guidelines approved by the President. Contracts must be for
specific services that cannot be provided by the regular staff of the agency, must
have a defined period, and shall specify a definite expected output. (Book VI,
Section 58 of the Administrative Code of 1987)
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