COA flags NYC for excessive payments on food, hotel reservations in 2023

December 6, 2024 | 4:12pm

MANILA, Philippines — The Commission on Audit (COA) flagged the National Youth Commission (NYC) for excessive payments for hotel reservations and food accommodations. 

In December, COA began releasing its 2023 findings across all government agencies.

The NYC was flagged by the auditing body for failing to validate training expenses amounting to P19.7 million for local accounts. COA also could not determine the validity of P7.8 million for foreign accounts.

COA flagged a “lack of controls in various activities resulted to excessive payments for hotel room reservations and food accommodation totaling P32,490.00.” 

The excessive payments stemmed from the NYC’s 1st Agency Quarterly Performance Review on April 13, 2023. COA noted that six participants who attended the event were not included in the appropriate office orders. 

“Audit further disclosed that the said employees attended on behalf of the non-attendees. Even though the Management had good intentions when they sent the aforementioned employees, their attendance at the event is still considered unauthorized because they are not included in the Office Order,” COA stated.

This was not the only instance where the NYC was flagged for excessive hotel expenses.

The COA also called out the NYC Office of the Commissioner Representing Visayas to justify a P7,699 charge for a single room at Bayview Park Hotel, which was unused during the Local Conference of Youth-Phils event.

The COA said the excessive cost of the unused accommodation rooms and meals could have been avoided if the NYC asked the absent participants to pay for their rooms. 

The NYC also failed to provide complete supporting documents for a total of P1,227,759.20. Of this amount, P578,244.05 was paid and approved by the wrong signatories, as indicated in the attached documents. Below are the accounts that lacked proper supporting documents:

• Training expenses: P479,693.65 (missing a signed copy of the project proposal, post activity report, signed market study and justification, signed purchase request, post activity report, copy of course outline and presentation) 
• Travelling expenses – local: P166,321.50 (missing a signed itinerary of travel, travel order, abstract of canvass, justification for early departure stated in the travel order, justification on choosing the payee who is not the lowest bidder, terminal report) 
• Traveling expenses – foreign: P581,744.05 (missing an acceptance of nominees as participants, travel authority approved by the Department of Interior and Local Government, acceptance of nominees as participants, logistics information, NYC Special Order) 

The NYC also flagged for the late issuance of office orders for the payment of resource persons amounting to P35,300. 

COA urged the NYC to implement stricter controls over its training and seminars. It emphasized the need to ensure that all participants are authorized to attend the events.

The COA’s findings cover 2023, during which former Youth Commissioner Ronald Cardema led the office when these accounting lapses occurred.

President Ferdinand Marcos Jr. removed Cardema in 2024, appointing Joseph Ortega as his replacement.

Cardema is a known supporter of former president Rodrigo Duterte and his family. Under Cardema’s leadership, the NYC was also criticized for its low budget utilization.