MANILA, Philippines – The Commission on Audit (COA) issued 76 notices of disallowance against P596.6 million in financial assistance released by the Cebu city government as a result of violations in procedure.
The audit report, released Thursday, August 18, said the government failed to observe the correct procedures for cash grant releases. This is because no prior approval was given by the Sangguniang Panlungsod.
The COA report said, "The disbursements totaling P596,658,915 chargeable against the appropriation Aid to City Barangays-Financial Assistance for Various Projects …is disallowed in audit due to lack of the required authorization of the Sanggunian on the list and cost of projects to be implemented.”
Under Appropriation Orders 2417 and 2418, the use of lump-sum appropriations under capital outlay needs to be approved by the city council relative to the list of eligible projects. in this case the cash releases themselves went against the provisions.
The two appropriation orders also said no fund releases are allowed unless the Sanggunian approves the barangays' development plan and project proposals.
The cash grants, according to the audit report, were released from September 1 to December 31, 2015.
The COA added, “We recommend that management (city government) require the barangays to refund the amount of P596,658,915 granted to the city barangays due to the absence of the required authorization." – Rappler.com