Vice President Sara Duterte attends the House Committee on Good Governance and Public Accountability hearing on November 25, 2024. Maria Tan, ABS-CBN News

MANILA — The Commission on Audit (COA) has flagged two major programs under the Office of the Vice President (OVP) for issues in guidelines and having a low utilization of funds. 

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COA found there were incomplete guidelines and procedures in the OVP's PagbaBAGo Campaign, which aims to provide school bags, learning materials and dental kits to learners in remote and economically challenged areas. 

The OVP did not have details on the identification of target school beneficiaries, determination of target grade levels of student beneficiaries, distribution of the bags and kits, as well as inventory management.

The program, in coordination with the Department of Education (DepEd), aims to serve one million learners by 2028. Last year, OVP served 146,274 learners amounting to P40.51 million.   

Another goal of the program is to plant a million trees "in response to climate change."

State auditors were told by the Special Projects Division that several factors were considered, like if the school is located in a remote area, among last mile schools, and located in areas with 4Ps (Pantawid Pamilyang Pilipino Program) beneficiaries.

Concerned personnel also said the program prioritized Grade 1 and 4 students but could cater to all grade levels "when there is enough inventory of bags and kits."

The COA also noted the distribution lists were not uniformly predetermined as to the names of the students, contrary to the Manual of Operations.

It also found out that the lists were "pre-signed by the students prior to the actual date of distribution" casting doubt on whether the beneficiaries actually received the bags and dental kits. 

"Given the involvement of various officials and employees across Central and Satellite Offices, it is necessary for the agency to have comprehensive guidelines and procedures for the PagbaBAGo Campaign. These control mechanisms ensure the prevention of gaps and promote uniformity in the implementation of the program," COA said.

LOW BUDGET UTILIZATION FOR MTD PROGRAM

COA also flagged the low budget utilization of the Mag Negosyo Ta 'Day (MTD) program where only P600,000 (0.4 percent) of the P150 million was spent as of December 31, 2023.

This was due to "unforeseen difficulties in the implementation of the program." 

Under MTD, individuals, groups or sectors who are qualified beneficiaries receive cash grants ranging from P15,000 to P200,000.

COA said there was no study conducted on how to utilize the budget for the program and the implementing unit was "undermanned" with only seven personnel.

"These observations only showed the lack of preparedness to utilize the P150-million budget for the program. Considering that this is the pilot year of implementation of the MTD program, difficulties are expected," the report read.

The audit team also noted that most potential beneficiaries found it difficult to comply with required documents, with only four (1 percent) of the 578 applicants able to comply.

"Had proper planning (been) conducted before the implementation of the program, these concerns could have been considered in the estimation of the budget and setting of targets," it added.

COA reported delays in the liquidation of P600,000 worth of cash advances for the grants to the four beneficiaries of the MTD program, with delays ranging from 27 to 191 days.

Under the memorandum of agreement with the OVP, beneficiaries must use the funds within 60 days from release, liquidate expenses within 15 days from utilization and return to the OVP any amount not utilized. 

ISSUES IN WELFARE GOODS DISTRIBUTION

State auditors also found deficiencies in the distribution of welfare goods due to "gaps in guidelines and procedures." 

"Various deficiencies in the distribution of welfare goods were observed due to gaps in the existing guidelines and procedures and control measures, which is not strictly in accordance with Sections 123 and 124 of the Presidential Decree (PD) No. 1445; thus, the validity and occurrence of the distributions of welfare goods could not be ascertained," the report read.

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COA said documents like a distribution list, situational report or mission order and list of identified beneficiaries were not required by the OVP to be submitted.

The audit team found that distribution of welfare goods in five instances on March 31, October 5, December 14, and December 29 were not supported with complete documentation.

The goods which amounted to P64.4 million, included PanSarap buns for schools in Davao City and Upi, Maguindanao; supply of rice for disaster relief operations and year-end food packs. 

The audit team recommended the OVP revisit the guidelines to include necessary documents and revise the period of submission of monthly reports.

INVENTORY MANAGEMENT ISSUE

COA observed lapses and deficiencies in inventory management in the Davao Satellite Office on December 18 to 20, 2023. There were food items nearing expiry, food items not found in the storage area, and food items kept in an unventilated area and in the truck.

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These were for the implementation of the OVP's Kalusugan Food Truck, a mobile kitchen to deliver food for disaster responders during relief operations.

Eight hundred instant cup noodles were not in the storage area during physical inventory.

According to post activity reports, the cup noodles were distributed to victims of the Tondo fire in December 2023 after being brought to Metro Manila to avoid expiry.

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The COA report also showed that OVP spent more funds for assistance and welfare goods last year, despite issues in implementation and distribution.

In its annual audit report, the OVP spent P1.1 billion for assistance and subsidies last year. This is more than double the P378 million spent in 2022.

Among those provided are medical/burial assistance and medical/physical examination of OVP employees and personnel.

The agency also shelled out a higher amount for welfare goods expenses last year. It spent P176 million which is a huge increase from the P19 million in 2022.

'OPTIMALLY UTILIZED'

The audit team noted how the OVP utilized P1.89 billion (85.45 percent) of its over P2 billion budget, showing the allocated funds were appropriately and optimally utilized for socio-economic programs.

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"Based on the Quarterly Physical Report of Operation (BAR No. 1) as of December 31, 2023, the agency's accomplishments were higher than the targets per output indicators, which means that the agency was able to accomplish its PAPs as intended. We commended the Management in achieving its target accomplishments for its Socio-Economic Program Delivery," COA said.

Included in the OVP's socio-economic programs are medical and burial assistance, Libreng Sakay Program, PagbaBAGo.

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