In its December 2024 report, the Commission on Audit (COA) revealed that Kabankalan City left P132.119 million from the Local Disaster Risk Reduction and Management Fund (LDRRMF) unspent by December 2023.
COA found this unutilized fund to be inconsistent with the NDRRMC-DBM-DILG Joint Memorandum Circular No. 2013-1, which mandates proper monitoring and implementation of disaster risk management projects.
The state auditor recommended that the City Disaster Risk Management Officer, along with the Local Disaster Risk Reduction and Management Council (LDRRM) and other relevant officials, review and consolidate all available funds.
They must also develop viable projects and activities to effectively utilize the funds, enhancing the City’s disaster preparedness and response to ensure it can effectively handle future emergencies, COA said.
By June 2024, the city had made only partial progress in implementing COA’s recommendation.
Brigada News FM-Kabankalan has yet to interview key officials to check on the progress of COA’s recommendations and ensure the effective use of funds, with the goal of improving the City’s disaster preparedness and safeguarding the community from future threats.
Financial performance
A comparative analysis of the Statement of Financial Performance revealed a trend in the city’s finances. The report showed a decrease in Income, an increase in Expenses, and a subsequent decline in Net Income.
In addition to the performance analysis, the city’s Statement of Financial Position, detailed in the COA report indicated increases in Assets, Liabilities, and Equity.
Projects in 2023
Meanwhile, in 2023, the City invested heavily in infrastructure and public service projects aimed at improving the community’s well-being.
These projects included the construction of buildings and structures, as well as the repair and rehabilitation of irrigation systems, water supply facilities, and electrification efforts across various locations.
The total cost of these development projects amounted to ₱346,348,411.14, broken down as follows:
- Building & Structure Projects: ₱334,918,411.14
- Irrigation & Water System Projects: ₱5,125,000.00
- Electrification Projects: ₱6,305,000.00
Delayed COA reports
It can be noted that COA delayed the publication of its 2023 audit reports until December 2024, almost a year later than expected.
This delay occurred due to a provision in the 2023 General Appropriations Act (GAA), which required COA to validate the actions taken by agencies in response to prior audit findings.
COA Assistant Commissioner Alexander Juliano explained the commission’s reason: He clarified that the COA “must comply with Section 99” of the 2023 General Appropriations Act (GAA), which governs the 2023 budget law.
Section 99 of the 2023 GAA requires all agencies to submit a status report on the actions they have taken in response to audit findings and recommendations within 60 days of receiving the audit report.
The 2022 GAA included the same provision, but COA began uploading its annual audit reports (AARs) in June 2023, a delay also observed in previous years. Even when the AARs uploaded earlier in June, agencies still had time to provide explanations.
Before publishing the AARs, COA auditors issue an audit observation memorandum (AOM) to flag potential issues in transactions, which they do confidentially.
Agencies then respond to these observations and explain the flagged transactions. Government offices can submit their responses until the finalization of the AARs, which typically occurs during the exit conference, usually held between February and March, the state auditor said.
Reymund Titong is a Filipino journalist steadily building his voice in the field of news reporting, driven by a commitment to tell meaningful and relevant stories.
He serves as a correspondent for Rappler, maintains a personal blog on Medium, and is the communications officer of Hope Builders Organization Negros Island.