December 4, 2024 | 12:00am
MANILA, Philippines — The Commission on Audit (COA) has recommended to the Office of the President that it implement stricter measures in granting financial assistance to local government units (LGUs) and public hospitals.
In its 2023 annual audit report on the OP, the COA noted the low utilization rate of the financial assistance of P1.53 billion released to LGUs and government hospitals for the acquisition of medical equipment and for treatment and hospitalization of indigent patients.
The financial assistance was drawn from the OP’s Socio-Civic Project Fund (SCPF). The audit body noted that of P1.48 billion in financial assistance released to government hospitals in 2023, only five percent or P80.64 million was actually disbursed as of year-end, leaving a balance of P1.397 billion.
The COA said five of the recipient hospitals and institutions – namely the Zamboanga City Medical Center (ZCMC), Philippine Orthopedic Center (POC), Department of Health (DOH), Cagayan Valley Medical Center (CVMC) and the Provincial Government of Zamboanga Sibugay (for public hospitals/medical centers in the province) – recorded “no disbursement,” or zero utilization, as of year-end.
The audit breakdown showed that ZCMC received financial assistance from the OP amounting P64.824 million, while the POC received P200 million, the DOH (P830 million), CVMC (P100 million) and the Provincial Government of Zamboanga Sibugay (P50 million).
Meanwhile, of the P55-million financial assistance granted to LGUs, only 47 percent or P25.9 million was disbursed, while the status of P10 million received by one LGU remained unconfirmed, thus leaving a balance of P19.068 million.
The LGU identified to have failed to give an update on the status of the P10-million fund it received from the OP was the municipal government of Opol in Misamis Oriental.
Meanwhile, the provincial government of Zamboanga Sibugay was again called out over its failure to disburse a single centavo out of the P15-million assistance it received from the OP. This was on top of the P50 million it received as assistance from the public hospitals under its jurisdiction.
The COA noted that based on a memorandum of agreement (MOA) the OP entered into with the LGUs and government hospitals, the assistance shall be utilized within a year from the date of the actual transfer of funds.
“Based on the foregoing analysis and disbursement trajectory, it is best for OP to institute measures that would ensure robust utilization of financial assistance by the implementing agencies aiming to reach the intended indigent beneficiaries, including, among others, the periodic monitoring of fund transfer and assigning focal persons that track fund utilization,” the COA recommended.
The audit body said the OP should also be more strict with requiring the recipient LGUs and government hospitals to regularly submit quarterly disbursement and liquidation reports in accordance with the MOA.
“We recommended and the (OP) Management agreed to institute measures to address delays in the liquidation and low rate of implementation of financial assistance by the implementing partners, incorporating among others: strict utilization period, liquidation timeline and assignment of focal/accountable person that would track fund transfer and utilization,” the COA said.
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