COA uncovers P2.2M illegal extra cash gift, over P11.4M in PS cap excess
Latest State audit in the operations of the Municipality of Pavia yielded multi-million in questioned transactions and disbursements.
With higher revenue collections realized – 29.31% than the targeted P56 million and 8.60% more compared to previous year – expenditures though posted an increase of 15.17%.
Further still came the specifics as contained in the “significant findings” that marked the 2009 report of the Commission On Audit (COA).
To start off, 2008 Pavia operations under Mayor Arcadio Gorriceta incurred over P2.2 million in illegal extra cash gift. Contrary to law and wanting now of full refund, the extra cash gift contributed to the over P11.4 million excess of Pavia’s Personal Services (PS) limitations.
To note, provisions of the Local Government Code is clear – total appropriations whether annual or supplemental for personal services of a local government unit for one fiscal year shall not exceed 45% of the total annual income from regular sources.
Clear too, the provision in Local Budget Circular No. 75 where no local government unit can provide for additional PS cost once the limitation or cap is exceeded.
As for the extra cash gift, COA pointed out to Gorriceta that as per Department of Budget and Management (DBM) memorandum, any and all other benefit cash gift shall be within the PS limitation. Exceed your PS cap then it follows that no other extra cash gifts shall be granted, the DBM as per COA reminder went.
“In the computation of PS limitation as against PS cost, the Municipality incurred an excess in PS limitation of P11,493,082.43….,” excerpts of the COA report went.
Meantime, another COA discovery was on the service vehicles of the town that lacked proper documentation. Verification disclosed vehicles here that were used officially yet without car plates and unregistered. Even a multi-cab assigned to the Bureau of Fire Protection was not attached in the list of “municipal vehicles.”
“What will happen now to the gasoline, oil and lubricants used in these vehicles that are officially not the municipal government’s property yet were paid for by Pavia? And the danger it poses to those who are using it since with no proper and legal documentation, in case of accident or trouble, they will be the ones to be held liable,” a government insider said.
Incidentally, the COA report as per audit made by State Auditors uncovered nearly P2 million in gasoline, oil and lubricants expense accumulated in 2008. Worse, all these - P1.913,398.91 to be exact - were without corresponding documentation of fuel consumption, again, contrary to law.
The latest COA report also included discovery of illegal cash advances amounting to P1,247,827.89. Sadly, as per COA observation, the said amount is 4.39% more than last year’s figure with cash advances granted to officials and employees despite non-liquidation of previous cash advances..
“This practice shows an absence of sound and effective internal control system over cash advances and may increase the risk of possible misuse and misappropriation of government funds, ” said the COA Audit Team. “We recommend that the Municipal Mayor require the municipal officials and employees to liquidate cash advances within the reglementary period and no additional cash advances shall be allowed unless the previous ones have been liquidated or a proper accounting thereof has been made.”
Likewise brought anew to Gorriceta’s attention was the continuing Memorandum of Agreement (MOA) of the town with the public market vendors. The COA has since sought for revisions on the MOA terms stating that current stipulations were found to be “grossly disadvantageous” to the government.
And finally, the COA notification to Gorriceta on the repeated offense of printing calendars with his picture passed off as tax campaign. COA apparently could not find disbursement vouchers representing payment of P162,270 used by Gorriceta to print said calendars. This expenditure was questioned by COA stating that such resulted to misuse of government funds. COA ruled that Pavia has “no legal basis to undertake such activity and as COA noted, “calendars for 2008 were still printed charged against funds of the municipality.”