COA: OCD slow user of COVID funds

It could have been a case of overfunding, but just the same, the Commission on Audit (COA) flagged the Office of Civil Defense (OCD) for ostensibly slow utilization of funds intended for the government’s COVID-19 pandemic response.

In its 202 audit report, COA said the OCD’s slow construction of quarantine and isolation facilities in various local government units (LGUs) “deprived the intended beneficiaries of the needed facilities” to curb the spread of the virus.

But the OCD argued that use of the COVID funds were “mostly demand-driven.”

“If these requirements are already met, so there’s no need for additional expenses. And if these quarantine facilities will have reduction in occupancy, therefore there will also reduction in expenses,” OCD administrator Ricardo Jalad said.

State auditors said the ICD has received P4.5 billion under Republic Act (RA) No. 1194 or the Bayanihan to Recover as One Act for the construction and maintenance of isolation facilities.

In compliance with the law, the OCD transferred over P713.529 million to 24 LGUs in six regions, of which P335.293M was allocated for the operational requirements of two LGUs, while the remaining P378.235 million was intended for the construction of isolation facilities in 22 LGUs.

The COA noted however, that only four of the 22 LGUs completed the construction of the isolation facilities.

“The non-completion of these isolation facilities within the target completion date deprived the intended beneficiaries of the needed facilities to curtail the spread of the virus during the pandemic,” COA said.

“Moreover, failure of the LGUs to complete the construction within the deadline will result in the termination as provided under Section 4 of RA 1159 or the ‘Extending the Availability of the Appropriations under RA 11494’,” it added.

The audit agency pointed out that the OCD has “deliberately made consistent efforts to ensure the timely implementation of the program and projects through the issuance of various memoranda which clearly set clear guidelines and conditions including the validity of funds for all recipient LGUs to be guided properly.”

Further, the COA noted the OCD’s low utilization rate of funds for its humanitarian and disaster relief (HADR) operations transferred to its regional offices (ROs).

The COA said OCD received a quick response fund (QRF) of over P1.854B in 2021 under RA 11518 or the 2021 General Appropriations Act (GAA). Its office utilized more than P1.814B or 97.89 percent.

Its ROs, however, only utilized 74.17 percent of the funds transferred to them, leaving an unused balance of around P174.756M.

The office received P1.854 billion in Quick Response Fund, of which 97.89 percent or P1.814 billion was spent, the COA said.

However, it said in an annual audit report that OCD’s regional offices were only able to spend 74.17 percent of the total funds transferred to them, leaving an unused balance of around P174.756 million.

Jalad said the agency’s pandemic funds were meant to support the needs of isolation facilities, such as food, water, electricity, waste collection, sanitation, and the accommodation of health workers. The funds “cannot be spent on other expenses.”

“It’s the same for our disaster response fund,” he added.

Jalad also noted that some OCD regional offices were badly hit by COVID-19, which explained the low spending rate in some areas. But he said the agency was taking steps to address this.

“We are acquiring laptops so that our people can work from home or work from isolation facilities, and we are educating them on the proper procedures of procurement system, and we are filling up our regional offices,” Jalad said.

“Our offices only have an average of 20 people, and most of them are multitasking so we have to understand that our regional offices are not that capacitated but we are going towards that,” he continued.

The official also noted that despite the issues flagged by state auditors, the OCD received an unmodified opinion, the “highest opinion” that COA gives to government agencies.

“And in their letter to OCD, they said that there’s basis for giving the unmodified opinion and therefore OCD’s overall handling of its funds its excellent,” Jalad said.