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Republic of the Philippines

COMMISSION ON AUDIT
Commonwealth Ave., Quezon City

CONSOLIDATED REPORT

on the Audit of the

DISASTER RISK REDUCTION


MANAGEMENT (DRRM) FUND

For the Year Ended December 31, 2015


Republic of the Philippines
Commission on Audit
Office of Civil Defense
Camp Gen. Emilio Aguinaldo, Quezon City

January 10, 2017

Secretary Delfin N. Lorenzana


Department of National Defense
Chairman
National Disaster Risk Reduction Management Council
Camp Aguinaldo, EDSA, Quezon City

Consolidated Report on the audit of the


Disaster Risk Reduction Management (DRRM) Fund
For the year ended December 31, 2015

1. Pursuant to Section VII, 9 of COA Memorandum 2014-009 dated August 28, 2014, we
have prepared this Report consolidating the issues and observations in the audit of DRRM
Funds of various government agencies (national, local and corporate sectors) for the year
2015. This report is being made in the absence of a single/consolidated report on financial
data on disaster management, particularly on the receipt and utilization thereof. This will
serve as valuable reference in the programming of DRRM Funds by the Council Members
and various government agencies as this will enable them to see the overall picture of the
management of DRRM Funds.

2. This consolidated report highlights the financial and operational data on DRRM which
were included in the Annual Audit Reports on the following agencies:

a) Department of Agriculture
 Bureau of Fisheries and Aquatic Resources
b) Department of Budget and Management
c) Department of Education
d) Department of Energy
e) Department of Finance
f) Department of Health
g) Department of National Defense
 Office of Civil Defense
 Philippine Navy
h) Department of Public Works and Highways
i) Department of Science and Technology
 Advanced Science and Technology Institute
j) Department of Social Welfare and Development
k) Department of Transportation and Communications
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l) Local Water Utilities Administration
m) National Electrification Administration
n) National Irrigation Administration
o) Local Government Units

3. The significant audit observations and recommendations included herein are those reported
and fully discussed in the respective AARs of the following agencies:

a) Department of Agriculture
 Bureau of Fisheries and Aquatic Resources
b) Department of Education
c) Department of Health
d) Department of National Defense
 Office of Civil Defense
e) Department of Social Welfare and Development
f) Local Government Units

4. For the Local Government Sector, the only data provided were the observations and
recommendations. The consolidated financial and operational data for the local government
units are not available.

5. For the Corporate Government Sector, NIA was allocated QRF in the amount of
₱500,000.00. The funds given to LWUA and NEA were transferred by DOF and DOE,
respectively.

Financial and Operational Highlights

6. Financial Highlights

Sources of Funds for the National Government Agencies (NGAs)

 General Appropriations Act (GAA)

a. NDRRMF

The National Disaster Risk Reduction and Management Fund (NDRRMF) is


appropriated under the annual General Appropriations Act (GAA) which shall be
used for disaster risk and reduction or mitigation, prevention and preparedness
activities such as but not limited to training of personnel, procurement of equipment
and capital expenditures. It can also be utilized for relief, recovery, reconstruction and
other works or services in connection with natural or human-induced calamities
which may occur during the budget year or those that occurred in the past two years
from the budget year.

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b. Quick Response Fund (QRF)

The QRF is the thirty percent (30%) of the NDRRMF allocated to the agencies
identified by the National Disaster Risk Reduction and Management Council
(NDRRMC) as stand-by-fund for relief and recovery programs in order that situation
and living conditions of people in communities or areas stricken by disasters,
calamities, epidemics, or complex emergencies, may be normalized as quickly as
possible for affected communities in the shortest possible time.

c. Allocation from agency regular budget

All departments, bureaus, offices and agencies of the government are authorized to
use a portion of their appropriations to implement projects designed to address
DRRM activities in accordance with the guidelines issued by the NDRRMC in
coordination with the Department of Budget and Management (DBM) pursuant to
Section 22.e of RA No. 10121.

 Cash Donations from Local and Foreign Sources

Cash donations are assistance or contribution from local or foreign donor


entity/individual to the National Government for DRRM projects/program.

Sources of funds for the LGUs

 General Fund Current Year Appropriation

Not less than five percent (5%) of the estimated revenue from regular sources shall be set
aside to support disaster risk management activities such as, but not limited to, pre-
disaster preparedness programs, including training, purchasing life-saving rescue
equipment, supplies and medicines, for post-disaster activites, and for the payment of
premiums on calamity insurance.

Thirty percent of the five percent amount appropriated for DRRM shall be allocated to
the QRF or stand-by fund for relief and recovery projects and activities.

 Funds transferred from the NDRRM Fund

These are funds received from the National Government for DRRM activities upon
approval of the President.

 Funds received from other LGUs and other sources

These are cash donations received from other LGUs, local and foreign sources.

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7. Operational Highlights
National and Corporate Government Sectors

The available fund for NDRRMF and its utilization are summarized below with details
shown in Annex A:

Allotments QRF Donations Total


Beginning
₱ 99,798,775.85 ₱ 2,869,563,485.12 ₱ 564,185,945.07 ₱ 3,533,548,206.04
Balance
Receipts for
5,776,135,065.30 6,707,500,000.00 11,448,496.34 12,495,083,561.64
the Year 2015
Funds Available 5,875,933,841.15 9,577,063,485.12 575,634,441.41 16,028,631,767.68
Utilization
Amount 3,744,102,343.82 3,936,969,290.67 43,475,855.19 7,724,547,489.68
Percentage 63.72% 41.11% 7.55% 48.19%
Ending
₱ 2,131,831,497.33 ₱ 5,640,094,194.45 ₱ 532,158,586.22 ₱ 8,304,084,278.00
Balance

₱9.577M

₱5.876M

₱3.744M ₱3.937M

₱576M
₱43M

Total Receipts Total Utilization

Figure 1. Total Funds Available with their corresponding utilization (in Millions)

As shown in the figure above only 48.19 percent of the total available fund for NDRRMF has
been utilized. This represents 63.72 percent utilization of GAA allotments, 41.11 percent
utilization of QRF, and 7.55 percent utilization of donated funds.

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8. Major Accomplishments

Under Republic Act No. 10121, also known as the Philippine Disaster Risk Reduction and
Management Act of 2010, the National Disaster Risk Reduction and Management Council
(NDRRMC) is empowered with policy-making, coordination, integration, supervision,
monitoring, and evaluation functions with regard to the disaster risk reduction and management
initiatives of the Philippines.

The NDRRM Council organization has expanded from 19 agency members to 44 agency
members with Civil Society Organization (CSO) and private sector representatives.

In 2015, among the 44 member agencies only 32 submitted their accomplishment reports
vis-a-vis the National Disaster Risk Reduction and Management Plan (NDRRMP), namely:

1. Department of Public Works and 19. League of Provinces of the Philippines


Highways (DPWH) (LPP)
2. Department of Education (DepEd) 20. Philippine Red Cross (PRC)
3. Department of Energy (DOE) 21. Disaster Risk Reduction Network
4. Department of Justice (DOJ) Philippines (DRRNetPhil - NGO)
5. Department of Health (DOH) 22. Philippine Commission for Women
6. Department of Foreign Affairs (DFA) (PCW)
7. Department of Interior and Local 23. Office of the Presidential Adviser on the
Government (DILG) Peace Process (OPAPP)
8. Department of Labor and Employment 24. Armed Forces of the Philippines (AFP)
(DOLE) 25. Department of Science and
9. Department of Finance (DOF) Technology-Philippine Institute of
10. Department of Budget and Management Volcanology and Seismology (DOST-
(DBM) PHIVOLCS)
11. Department of Social Welfare and 26. Department of Science and Technology-
Development (DSWD) Philippine Atmospheric Geophysical
12. Department of Trade and Industry (DTI) Astronomical Services Administration
13. Department of Environment and Natural (PAGASA)
Resources - Forest Management 27. National Economic Development
Bureau (DENR-FMB) Authority (NEDA)
14. Social Security System (SSS) 28. Housing and Land Use Regulatory Board
15. Government Service Insurance System (HLURB)
(GSIS) 29. Commission on Higher Education
16. Metropolitan Manila Development (CHED)
Authority (MMDA) 30. Office of the Executive Secretary (OES)
17. Philippine Health Insurance 31. Union of Local Authorities of the
Corporation (PhilHealth) Philippines (ULAP)
18. National Anti-Poverty Commission 32. Center for Disaster Preparedness (COP).
(NAPC)

It is the aim of the NDRRMC in implementing the NDRRMP to reduce, if not to totally
eradicate, the number of casualties and damages caused by said disasters. The details of the

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different incidents/disasters, natural or human induced, that occurred in the country, are shown in
the table below.

In the course of the implementation of the NDRRMP, no agreed targets were set at the
beginning of each year of implementation by the member agencies; thus, the percentage of
accomplishment for each thematic area cannot be statistically calculated.

The NDRRMC Member agencies have submitted their various accomplishments in


accordance with the outcomes indicated in the NDRRMP, as follows:

Under Thematic Area 1: Disaster Prevention and Mitigation

a) DepEd has integrated and institutionalized the comprehensive DRRM in Basic Education
Framework and Brigada Eskwela; and in their five-year strategic plan and its medium
term plans for their regional and division offices. Also it issued a Policy on Establishing
Coordination and Information Management Protocols. Moreover, the DepEd has an
activity of annually collecting the school hazard data for understanding and determining
policy actions.

It has institutionalized guidelines on the Annual Conduct of Student-led Risk


Assessment and Hazard Mapping in schools, family preparedness and integration of
Solid Waste Management questionnaire in the Enhanced Basic Education Information
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System (EBEIS) and Enhanced School Improvement Plan (SIP) Manual. Also, it
completed 92 percent Geographic Information System (GIS) mapping of DepEd schools.

b) DILG has mainstreamed Disaster Risk Reduction (DRR) and Climate Change Adaptation
(CCA) in 653 Provincial, City and Municipal Plans to include the Comprehensive Land
Use Plan (CLUP) and Comprehensive Development Plan (CDP), policies, and/or
ordinances.

It has conducted Disaster Preparedness Audit of the 1,591 LGUs nationwide excluding
ARMM with special focus on the 422 LGUs that are in the major river basins and
conducted the Environmental Audit in 108 cities as components of the Seal of Good
Local Governance (SGLG). With the approval of the green building code, the DILG
formulated an infrastructure guidelines and tools, forms and checklist. In 2015, 13
provinces, 15 cities, and 61 municipalities were trained on infrastructure audit.

c) PHIVOLCS has been updating and upgrading the PHIVOLCS-Rapid Earthquake


Damage Assessment System (REDAS) software which is used in mainstreaming DRR
into the local government units, government agencies and private institutions local
development planning processes, emergency preparedness and contingency planning.
PHIVOLCS has conducted 14 REDAS trainings.

d) PAGASA has developed an assessment of Climate Change Impacts and Mapping to


vulnerability to Food Insecurity under Climate Change to Strengthen Household Food
Security with Livelihood's Adaptation Approaches; Climate-Smart Knowledge Database,
forecasts p roducts; Knowledge Sharing and the Provision of other related services to
Increase Climate-Resilience of Tilapia Farmers; developed adaptive capacities of
vulnerable communities and ecosystems for resiliency to threats, shocks, disasters and
climate change; strengthened institutional capacities of the local government units,
concerned national government agencies, academic institutions and civil society
organizations to manage disaster and climate change risks; updated flood hazard and
risks maps and development of a Hydraulic Model for the Marikina River Systems;
automated the flood early warning system for Disaster Mitigation.

e) HLURB has provided technical advisory services for the Local Government Units
Shelter Planning. It has provided a total of 1,063 technical advisory services, of which
218 were orientations activities, 450 training workshops, and 395 write shop of the
LGU local shelter planning.

f) FMB-DENR has implemented the National Greening Program wherein a total of


313,580,000 seedlings were produced in 334,364 hectares against its target of
300,000,000 seedlings in 300,000,000 hectares. Also, it intensified the forestry law
enforcement works and campaign for anti-illegal logging under EO No. 23, series of 2011.
A total of 1,833 criminal cases were filed resulting to 214 convictions. Further, a full
swing implementation of the National Forest Protection Program protecting 6.839 million
hectares of forest lands with forest cover and 3.717 million hectares of protected areas or
national parks.

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g) DPWH has upgraded the National Building Code to include Green Technology which
was approved on 22 June 2015. Thirty national owned buildings were assessed and has
completed the design of the one-storey resilient school building and the two-storey multi-
purpose building. It has conducted a training for vulnerability and risk assessors to ensure
there are enough experts to conduct vulnerability and risk assessment for critical
infrastructures along the West Valley Fault and has uploaded in the portal of Learning
Resource Materials Development System all DRRM and CCA products from partner
agencies as part of their commitment in information sharing targets of the NDRRMP.

h) DOF has adopted the Disaster Risk Financing and Insurance (DRFI) Strategy which
provides a comprehensive framework for the implementation of financial protection
solutions against natural disasters at the national, local and individual levels. It has
commenced preparations for the implementation of two (2) DRFI strategy to include the
Local Disaster Resilience Insurance Fund (LDRIF) with 10 LGUs participating and the
DRFI strategy mainstreaming in two line agencies.

i) The OCD-NDRRMC, DILG, DBM, and DOF has drafted a Joint Memorandum
Circular (JMC) for the establishment and institutionalization of Disaster Risk Financing
and Insurance (DRFI) solutions in LGUs and NGAs. Under the JMC, acquisition of
DRFI solutions for disaster recovery, reconstruction, and rehabilitation is mandatory for
all NGAs, provinces, cities, and 1st to 3rd class municipalities. Acquisition of DRFI
solutions for the 4th to 6th class municipalities is optional, subject to availability of funds.

Under Thematic Area 2: Disaster Preparedness

a) DILG launched the Oplan Listo as an integral component of the National Disaster
Preparedness Plan (NDPP). The NDPP aims to contribute to the broader vision of
reducing loss of lives and assets due to negative impacts of single and/or multiple
hazards which may occur at any given time. Whereas, the Oplan Listo, as a component
tool, serves as the disaster preparedness manual for Local Government Units (LGUs) to
assist them in formulating disaster preparedness plan and provides for references and
checklists on levels of readiness. It also aims to ensure the safety and resiliency of
communities in facing the adverse impacts of disasters and climate change through LGU
Disaster Preparedness Manual.

b) DILG spearheaded the crafting of the Guidelines for the Management of the Dead and
Missing Persons and conducted capacity development activities for disaster risk
managers and key decision makers

c) DepEd developed "What Happens in Disaster!"- a children's storybook regarding the


lessons and stories of survivors of different kind of disasters. This storybook helps
increase students' awareness to threats and impacts of disaster and the necessary ways on
how to deal with the same.

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d) AFP conducted three communication exercises with other concerned agencies during
NDRRMC Nationwide Simultaneous Earthquake Drill, drafted an Operational Guidelines
for Search, Rescue and Retrieval (SRR) Cluster, and also conducted Tactical Exercise
without Troops (TEWT) adopting the scenario of 7.2 magnitude earthquake with the West
Valley Fault as generator.

e) OCD crafted the Community-based Disaster Risk Reduction and Management Basic
Instructor's Guide (BIG), a minimum standard guidebook in the conduct of the DRRM
in communities, the grassroots. OCD together with Center for Disaster Preparedness
(CDP) conducted Community Based Disaster Risk Reduction and Management
(CBDRRM) Basic Instructor's Guide Training of Trainers.

The Office of Civil Defense had spearheaded the crafting and approval of the following
guidelines, NDRRMC Memorandum Circular:

a. NDRRMC Memorandum Circular No. 11 regarding the Operational Guidelines in


the Conduct of Joint Rapid Emergency Telecommunications Team (RETT) under
the Emergency Telecommunications Cluster (ETC) which intends to serve as the
basic framework for strengthening the effectiveness and efficiency of the Information
and Communication Technology during disaster response operations and to provide
assistance at the Regional DRRMC Operations Center for coordination at the national
and local levels.
b. NDRRM Operations Center Standard Operating Procedures.
c. Joint Memorandum Circular 001 on the Implementing Rules and Regulations of
Republic Act No. 10639, also known as "An Act Mandating the Telecommunications
Service Providers to Send Free Mobile Alert in the Event of Natural and Man-made
Disasters and Calamities.
d. NDRRMC Memorandum NO. 48, series of 2015 on the localization of the Incident
Command System Forms to promote the operationalization of the Incident
Command System in the Philippine Context.
e. Implementation Plan "ltim na Nazarene" 2015 and 2016 prescribing for the national
level response during the Black Nazarene Traslacion (BNT) every January of each
year;
f. Implementation Plan "Pagdalo 2015" prescribes the NDRRMC's plan in the event
of a national level response during the 2015 Papal Visit.
g. Implementation Plan on Joint Task Group Emergency Preparedness (JTGEP) for
APEC 2015 Economic Leaders Meeting (AELM) to direct and oversee the overall
emergency preparedness, response and consequence management for all natural and
human induced disasters that may occur during the AELM in November 2015.
h. NDRRMC Memorandum Circular No. 517, series of 2015 on the Revised Guidelines
on the "Gawad KALASAG": Search for Excellence in Disaster Risk Reduction and
Management and Humanitarian Assistance 2015. The Gawad KALASAG is an annual
search to recognize outstanding performances of Local Disaster Risk Reduction and
Management Councils (LDRRMCs), Barangay DRRM Committees, Civil Society
Organizations (CSOs), Schools including Early Learning Centers, Government
Emergency Management (GEMs), hospitals, volunteer organizations, individuals, and
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other major stakeholders that continue to render exemplary contribution in promoting
and implementing significant DRRM-Ciimate Change Adaptation programs and
innovations that build community resiliency.
i. OPLAN MALASUBA (Maguindanao, Lanao, Sulu, Basilan): Regional Contingency
Plan for Displacement due to Armed Conflict.
j. Autonomous Region of Muslim Mindanao Response Protocol.

Moreover, the OCD has drafted the following guidelines for endorsement of the next
Administration to include the (1) Enhanced Guidelines on the Philippine International
Humanitarian Assistance; (2) Policy on Donated Funds; (3) Draft Guidelines on the
OCD-NFA Requisition and Issuance of Rice Assistance; (4) Draft Guidelines on the
Incident Command System; and (5) Draft National Disaster Response Plan for Human-
Induced Hazards.

Lastly, as the executive arm of the NDRRMC, spearheaded the conduct of the Sunset
Review of Republic Act 10121 with the view of enhancing the law to cope up with the so
called "new normal". As a way of reaching out to the community and to gather their
viewpoints for possible suggestions and recommendations to the review of the law,
DRRNetPhil and COP conducted various roundtable discussions and summits with the end
goal of coming up with a Position Paper vis-a-vis RA 10121.

Under Thematic Area 3: Disaster Response

The following are the reported accomplishments:

a) NDRRMC member-agencies, thru the leadership of the Office of Civil Defense, have
deployed personnel and assets to render their services at NDRRM Operations Center
(NDRRMOC). The NDRRMOC have been on Red or Blue Alert for 150 days to prepare
for an impending disaster and to address the needs of affected population during the
onslaught of 16 tropical cyclones/weather disturbances, four High-Density Population
Gatherings, and five APEC Major Activities.

b) OCD-NDRRMOC has developed and disseminated a total of 3,801 advisories and


reports, monitored 22 disaster response, and produced about 14 Disaster Final Reports.
This was complemented by the efforts of the DepEd, DFA, DTI, DPWH, and PIA
through the issuance of advisories and warning to their stakeholders.

c) DSWD has activated their field offices and warehouses/hubs which are able to provide
relief assistance. AFP and PNP have augmented this through the provision of
transportation services to deliver the relief items to communities.

d) DSWD, DepEd, and OCD deployed personnel for the conduct of Rapid Damage
Assessment and Needs Analysis during various disaster operations. The reports generated
were provided to Regional and National DRRM Operations Center and were consolidated
and validated for inclusion to NDRRMC Situation Reports.

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e) DILG, in cooperation with OCD, has spearheaded the conduct or workshops for the
formulation of the rules and regulations governing the implementation of the Management
of the Dead and the Missing (MDM) with the purpose of providing policies, guidelines,
systems, and procedures in order to: (a) strengthen the coordination and collaboration
among partner agencies and stakeholders of MDM at all levels; (b) ensure the efficient,
timely, and well-coordinated among partner agencies and stakeholders of MDM at all
levels; and (c) establish resource-sharing mechanisms among key players in MDM.

f) DSWD and DepEd have both implemented guidelines/procedures in accordance with


evacuation procedures. DSWD monitored the implementation of Memorandum Circular
No. 6, series of 2015 on the Guidelines in the Institutionalization of Women Friendly
Space in Camp Coordination and Camp Management. While the DepEd has enhanced
their coordination with the local government units and prepared schools for possible use
as evacuation centers.

A Joint Memorandum Circular No. 1 between DepEd-DSWD-01 LG- DOH re:


Guidelines on Evacuation Center Coordination and Management (ECCM) was
implemented. The guidelines cover all activities before, during, and after evacuation of
families affected by natural and human-induced disaster.

The design and location of temporary shelters are crucial to ensure the safety of the
families and ensure that their subsistence needs are provided. The DPWH has provided a
standard design for temporary shelters and also provided technical assistance in the
conduct of a feasibility study and assessment of shelter sites identified by the LGUs.

g) DSWD established eight Pilot Evacuation Centers cum Multipurpose Buildings in


Regions I, II, Ill, IV-A, V, VI, VIII, and CARAGA with dedicated spaces for livestock,
poultry, and pets near evacuation center.

h) DOH with DSWD have ensured that psychosocial services has been provided to affected
families especially those displaced in evacuation centers. Moreover, the DSWD even
conducted play and art activities for the children in evacuation centers.

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Under Thematic Area 4: Disaster Rehabilitation and Recovery

a) DND-OCD consolidated the Recovery and Rehabilitation Plans of the regions affected
by TY Ruby and Lando. It also developed guidelines for the facilitation of the Emergency
Shelter Assistance for the TY Ruby affected families. Participation and conduct of
Post-Disaster Needs Assessment (PDNA) are also done on affected regions during
major disasters.
Being the Vice-Chair for Disaster Rehabilitation and Recovery, NEDA monitors the
implementation of Programs, Projects, and Activities (PPAs) under the regional RRPs for
Typhoons Ruby, Seniang, lneng, Lando and Nona. It also convenes the RDRRMC
Committee on Rehabilitation and Recovery to discuss initial damage report as well as early
recovery initiatives and conduct of workshops for the crafting of the rehabilitation and
recovery program. NEDA is also in the process of building a database on non-government
support to the government's rehabilitation program for Yolanda affected areas. Likewise, it
conducts coordination meetings with relevant agencies to discuss interventions and
financial requirements to assist areas affected by El Nino. NEDA participated in desk
and field evaluation of National and Regional Gawad KALASAG finalists for the
Provincial DRRM Category and was part of the Philippine Delegation to the 3rd World
Conference on Disaster Risk Reduction (WCDRR) held in March 2015 in Sendai, Japan.

b) DOLE provided emergency employment to 18,357 beneficiaries who were affected by


natural calamities in 2015. On the same year, a total of 2,806 workers affected by the
natural calamities have their livelihoods restored through the provision of livelihood
projects amounting to P16.985M.

c) OPAPP provided Boat and Nets Livelihood Project to those affected areas of Typhoon
Yolanda.

d) NHA provided shelter units through Core/Modified Shelter Assistance (C/MSAP) program
to 2,672 families affected by major cyclones. It also organized the beneficiaries into
Neighborhood Association for Shelter Assistance (NASA). Likewise, it provided Cash
for Work (CFW) assistance to 906,294 persons engage long disaster mitigation,
preparedness, response and rehabilitation projects and activities amounting to ₱2.03
Billion. Lastly, it provided Emergency Shelter Assistance for 1,015,737 typhoon
“Yolanda”-affected families with damaged houses costing ₱18.78 Billion.

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9. Inventory of Equipment Acquired through Donations

National Government Sectors

AGENCY LOCATION ITEM / DESCRIPTION QTY. AMOUNT


RO I Aircon 14 not indicated
Aircon 19 361,950.00
DepEd
RO VIII Laptop Computer 1 34,988.00
Projector 2 57,600.00
Subtotal 454,538.00
RO III Desktop Computer 2 103,772.00
Aircon 3 167,493.20
Analytical Balance 2 86,608.00
Autoclave 5 1,118,439.17
Bacticinerator 2 100,000.00
Binocular 13 646,631.20
Bio safety Cabinets 3 450,781.42
Centrifuge 13 1,123,947.39
Cold Room with Generator 1 685,000.00
Colony Counter 2 113,250.00
Desktop Computer 127 6,343,114.36
Distilling Apparatus 2 5,267,800.00
Drying Oven 1 43,944.00
Gynecological Simulator 1 16,103.05
Hotplate 1 29,092.79
DOH Incubator 8 1,073,083.84
RO X Laptop Computer 9 345,960.00
MGIT Bactec 2 1,922,740.70
Microscope 15 655,153.40
PCR Workstation 1 16,983.61
PH Meter 1 50,000.00
Pipet Washer 1 17,500.00
Sprayer 2 358,400.00
Stripetor 2 73,203.00
Thermocycler 1 119,706.23
UPS 1 84,399.11
Vaccine Refrigerator 3 233,696.00
Vehicles 3 1,400,000.00
Vortex Mixer 1 20,211.72
Vortex Shaker 1 50,000.00
Water Bath 6 263,926.06
Subtotal 22,980,940.25
Desktop Computer 15 741,892.80
Laptop Computer 30 838,941.60
Central Office
Projector 1 31,000.00
Scanner 1 20,900.00
FO I Laptop Computer 5 94,771.20
DSWD
FO II Laptop Computer 4 75,816.96
FO III Laptop Computer 6 113,725.44
FO IVA Laptop Computer 9 170,588.16
FO IVB Laptop Computer 3 56,862.72
FO V Laptop Computer 5 94,771.20
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AGENCY LOCATION ITEM / DESCRIPTION QTY. AMOUNT
FO VI Laptop Computer 5 94,771.20
DSWD
FO VII Laptop Computer 6 113,725.44
Subtotal 2,447,766.72
External Harddrive 15 62,976.60
FO VIII Laptop Computer 5 94,771.20
Projector 2 64,421.70
FO IX Laptop Computer 6 113,725.44
FO X Laptop Computer 5 94,771.20
DSWD
FO XI Laptop Computer 6 113,725.44
FO XII Laptop Computer 5 94,771.20
FO CAR Laptop Computer 2 37,908.48
FO CARAGA Laptop Computer 4 75,816.96
FO NCR Laptop Computer 24 454,901.76
Subtotal 1,207,789.98
Inflatable Rubber Boat With
40HP Outboard Motor (W/ 4 3,840,000.00
Accessories)
Chainsaw 13 455,000.00
Water Pump 10 287,090.00
Water Bladder 5 119,500.00
CO HH Radio 20 316,000.00
OCD
Jack Hammer 13 773,500.00
GenSet 1 672,000.00
FORKLIFT JAC Forklift model
1 1,749,000.00
CPC D40 4 tons capacity
Water Treatment 3 11,589,000.00
Steel Rack 40 932,800.00
RO VIII Vehicle 1 1,366,517.85
Subtotal 22,100,407.85
GRAND TOTAL ₱49,191,442.80

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10. Inventory of Equipment Purchased out of DRRMF / Donated Fund

National Government Sectors

AMOUNT
AGENCY Location ITEM / DESCRIPTION QTY Out of Out of
DRRMF Donated Funds
DND SAO AFP Generator set with accessories 1 ₱ 819,992.00
Cervical Collar and other medical
DOH RO III 36,400.00
supplies
Ilocos
DPWH Camera 1 ₱ 19,500.00
Norte
Cellphone 10 437,500.00
Laptop Computer 1 56,500.00
Office Table 6 55,800.00
Steel Filing Cabinet 2 25,000.00
Southern
Aircon 3 28,500.00
Leyte
Desktop Computer 2 150,000.00
Laptop Computer 2 114,000.00
Zambales Analytical Balance 2 159,150.00
Color Guide 1 35,000.00
Dessicator 1 15,520.00
Machine with Abrasive Charges 1 123,500.00
Mixer with Bowl & Paddle 2 150,200.00
Oven 1 165,100.00
Sample Splitter 1 18,800.00
Standard Mold 3 77,400.00
Subtotal 1,631,470.00
Central
DSWD Aircon 6 191,200.00
Office
Portable Bag Closer 16 416,000.00
Subtotal 607,200.00
GRAND TOTAL ₱ 2,238,670.00 ₱ 856,392.00

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Significant Audit Observations and Recommendations

A. National and Corporate Government Sectors


Late / Delayed Implementation of Projects

11. The procurement by BFAR-RFOs of Fishing Gear/Paraphernalias (FGPs) to support


the livelihood programs of fisher folks in four out of five recipient Regions affected by
Typhoon Yolanda were delayed and not in accordance with the required specifications
which resulted in delayed distribution thereof or non-acceptance by some beneficiaries;
thus, attainment of the objective of the program to improve the socio-economic
condition of the target beneficiaries slowed down.

11.1 To ensure the improvement of socio-economic condition of the beneficiaries, BFAR


RFOs have developed technologies and implemented livelihood programs to support
fisherfolks affected by Typhoon Yolanda, especially those belonging to the capture
sector. Some programs or projects being implemented in the regions are the
distribution of fishery production supplies, fishing gears and paraphernalia,
equipment and facilities.

11.2 The DBM released SARO-BMB-E-13-0025942 dated December 27, 2013 to cover
the funding requirements for the implementation of the Rehabilitation Plan for
Typhoon Yolanda Affected Fisherfolks.

11.3 The targeted number of FGPs to be procured was fully attained by BFAR RFOs I,
IV-A, V, VI and XII. However the distribution thereof to the beneficiaries were
below the target, except for RFO I which accomplished 100 percent. Details are as
follows:
%
Office Procured Distributed Undistributed
Undistributed
I 510 510 - -
IVA 9,100 4,958 4,142 45.52%
V 5,776 1,947 3,829 66.29%
VI - Phase II (AHON
Project - Distribution 643 67 576 89.58%
of Fiberglass Boats)
VI - Phase III (AHON
Project - Provision of 116,550 48,314 68,236 58.55%
Gill Net Sinkers)
VI - Phase III (AHON
Project - Provision of
7,231 6,099 1,132 15.65%
FGPs and Marine
Engines)
XII 338 142 196 57.99%
Total 140,148 62,037 78,111 55.73%

16
11.4 For CY 2015, the distribution of fishing gears (grills, hook and lines), motorized
banca, marine engines, lead sinkers and fiberglass pump boat was delayed due to the
following reasons:

a) Delayed Procurement

Despite the early preparation and approval of the Purchase Request for the items
in the first quarter of 2015, the process of procurement at the RFO was slow such
that the FGPs were only purchased in December 2015 and delivered in February
2016.

b) Limited Manpower and Transportation Resources

Some beneficiaries were located in island municipalities and remote areas,


wherein there is no available vehicles to transport the said items.

c) Poor quality of procured motorized bancas resulting in non-acceptance by BFAR


XII of the prior deliveries and changes in specification of motorized bancas (from
wood-type to fiber glass type)

11.5 It was recommended that the Management of BFAR-RFOs prioritize the timely
distribution of FGPs by coordinating with the concerned Provincial folks and
direct the OIC-Provincial Fishery Officers to coordinate with the LGUs to
expedite the transportation of the finished boats for distribution to its intended
beneficiaries.

Low Utilization of Fund

12. Late release of fund, delayed implementation of programs, non-compliance of


requirements and lack of identified DRRM activities/projects resulted in the under
utilization of DRRMF in the total amount of ₱594,983,487.00.

Unutilized
Agency Purpose Reason/Cause
Amount
LWUA received the allocation only in
Water System November 6, 2015. Hence, late distribution
LWUA ₱527,075,197.00
Projects/Programs of funds to water districts.

17
RFO V received the funds intended for
rehabilitation and/or livelihood assistance to
beneficiaries in Bicol Region, severely
affected by Typhoon Glenda in July 2014.

However, despite its early receipt, the funds


remained unutilized as of December 31,
Typhoon Glenda 2015.
DA (BFAR) 4,680,000.00
Assistance
The delayed implementation of some
fishery programs were due to slow
procurement process, late compliance of
documentary requirements necessary for
payments and lack of proper planning for
the execution of their targeted programs.

The project started in 2008 and funds were


already downloaded to the regions and to
the LGUs from CYs 2008 to 2015.
However, it is notable that as of December
31, 2015, there are units still not yet started
since 2008 to 2014 totaling 22,281 with
Core Shelter total cost of ₱1,748,290 million.
DSWD Assistance Program 1,748,290.00
(CSAP) The delays were due to failure by LGU to
provide counterpart funds and to comply
with shelter assistance requirements,
delayed release of certification as safe areas
by the MGB/ PhiVolcs/ PAGASA and
validation of relocation sites still on-going.

Rehabilitation and
recovery on the Failure to identify activities directed to
DOH health aspect of 61,480,000.00 outcome of the thematic areas as formulated
disaster-affected in the NDRRMP.
communities
TOTAL ₱594,983,487.00

12.1 The following courses of actions were recommended for the management of:

 LWUA to facilitate the release of the unutilized funds to the intended water
districts to ensure that the projects are immediately carried out and fully
implemented;

 DA to require the Officers-in-Charge in the implementation of Typhoon


Glenda rehabilitation plan/program to prepare plan of activities for the
implementation of various projects and comply the documentary
requirements necessary for the payment of financial assistance.

18
 DSWD to coordinate with the concerned LGUs in the payment of LGUs
counterpart and submission of all documentary requirements for shelter
assistance before funds are downloaded to them; and

 DOH to improve their risk reduction management plans, the implementation


of the corresponding programs/activities, and fund utilizations taking into
consideration the NDRRMP 2011-2028.

Non- establishment of inventory system

13. A sound relief goods inventory system was not established at the DSWD resulting in the
spoilage of an estimated ₱11.896 million worth of sardines. Moreover, erroneous
recording of such inventory under Financial Assistance to NGAs instead of Welfare
Goods for Distribution Inventory resulted in the misstatement in both accounts.

13.1 Section 2 of PD No. 1445 otherwise known as State Auditing Code of the Philippines
provides, among others, that “xxx all resources of the government shall be managed,
expended or utilized in accordance with law and regulations, and safeguarded
against loss or wastage through illegal or improper disposition, with a view to
ensuring efficiency, economy and effectiveness in the operations of government. The
responsibility to take care that such policy is faithfully adhered to rests directly with
the chief or head of the government agency concerned.”

13.2 Section 123 of PD 1445 states that “Internal control is the plan of organization and
all the coordinate methods and measures adopted within an organization or agency
to safeguard its assets, check the accuracy and reliability of its accounting data, and
encourage adherence to prescribed managerial policies.

13.3 Inspection of inventory held for distribution revealed that 50 cartons containing 100
tins of Gold Cup Sardines worth ₱ 11.896 milion were spoiled / unfit for human
consumption. Further, it was observed that the expiry dates were tampered.

13.4 Verification of records showed that the relief goods inventory was part of the
procured relief goods per PO No. 1410112 dated October 23, 2014 which were
originally intended to be delivered at FO V for the Mayon family food packs (FFPs)
in Albay. However, due to lack of space and congestion of warehouses in FO V and
the confirmation of the Regional Director that remaining stocks of Mayon FFPs in
Albay are sufficient enough to do their recovery program for the Mayon evacuees, the
goods were delivered directly to National Resource Operations Center (NROC),
Pasay, Metro Manila.

13.5 In view of the noted conditions of the sardines, Management informed that they have
already taken actions and directed the supplier to replace the stocks not later than
June 2016 and with the condition that the acceptance pertains only to the civil aspect
of the delivery.
19
13.6 In addition, verification of records disclosed that the deliveries made to NROC were
recorded as Financial Assistance to NGAs instead of debiting Welfare Goods for
Distribution. The accounts should have been adjusted since per consultative meetings
with the FO V Director, the FFPs remained in the inventory in view of the reported
sufficiency of stocks in FO V. As a result, the accounts Welfare Goods for
Distribution and Financial Assistance to NGAs were understated and overstated by
the same amount respectively.

13.7 It was recommended that the DSWD Secretary direct the Property Management
Division to properly comply with the following:

 Set clear/written guidelines (or quality control procedures) concerning the


inspection, acceptance and remedies in case of discovery of unwanted items
like spoiled, tampered and/or dented goods;

 Monitor strictly the movement of goods stored at the warehouse so that those
nearing their expiry date may be disposed ahead than those with late expiry
dates;

 Follow-up and monitor the replacement of the expired goods;

 Monitor closely the storage conditions of the warehouse in relation to the


required storage conditions of the relief goods;

 Look into the causes of the spoilage, leakage or bulging of the subject
sardines and make the necessary action (e.g. storage conditions, blacklisting
of unscrupulous suppliers) to avoid the same incidents from happening
again;

 Conduct investigation on the alleged tampering of expiry dates and file


appropriate action against the Fortune Group (supplier), if warranted, and;

 Instruct the Accountants to draw Journal Entry Number (JEV) to adjust the
recorded Financial Assistance instead of welfare goods for distribution.

Utilization of Quick Response Fund (QRF)

14. QRF in the aggregate amount of ₱128,626,827.51 was utilized for fund transfer for
repairs and reconstruction of DND and Bureaus’ facilities which are not in accordance
with the purposes of QRF, and as transfer of funds to Implementing Agencies with huge
unliquidated balances, resulting in the slow utilization of the funds and non-liquidation
thereof and delayed completion of disaster-related projects, prejudicial to the calamity
victims who are the intended beneficiaries. Moreover, some items procured out of QRF

20
were priced higher or excessive by at least ₱1,967,062.44; thus, are disadvantageous and
likewise rendered unreasonable the procurements from QRF.

14.1 For CY 2015, DND had available funds of ₱572,896,243.84 for disaster risk
reduction and management services, broken down as follows:

Amount
From GAA CY 2015 ₱352,500,000.00
From Continuing Appropriation 220,396,243.84
Total ₱572,896,243.84

14.2 Out of the total available funds, ₱236,311,243.59 were utilized, for which
₱128,626,827.51 was paid during the year, for acquisition of goods and equipment,
repairs/construction and fund transfers to various Implementing Agencies,
summarized as follows:

Amount
Utilization Payment
Acquisition of goods/equipment ₱ 88,971,857.60 ₱ 8,355,543.60
Repairs/construction 12,028,692.08 -
Transfer of funds for acquisition of
61,380,759.00 46,341,349.00
goods/eqpt.
Transfer of funds for repairs/reconstruction 73,929,934.91 73,929,934.91
Total ₱236,311,243.59 ₱128,626,827.51

14.3 The above amount consists of projects already awarded to winning bidders and fund
transfers covered by approved Memorandum of Agreements. Out of this amount,
however, only ₱128,626,827.51 were paid for and/or disbursed as of December 31,
2015, while the rest are still pending, until approval of POs/contracts and/or delivery
of items.

14.4 The following deficiencies were noted in the review of the above transactions:

14.4.1 The utilization of funds amounting to ₱73,929,934.91 for


repairs/reconstruction, using the QRF, was not in accordance with the
intended purpose of QRF as authorized in DND’s budget, thus, defeats the
purpose of the QRF as stand-by fund to ensure immediate action during
calamities. DND is not an implementing agency for rehabilitation and

21
reconstruction projects but the DPWH. Details are as follows:

Agency / Amount
Purpose of fund transfers
Transferee transferred
Repair, maintenance and reconstruction of permanent AFP-Finance ₱41,824,100.00
structures of CENTCOM as follows: Center
 Repair of AFPCES Building
 Rehabilitation of EP Condo
 Repair/reroofing of Camp LapuLapu Station Hosp
 Rehabilitation of 2-storey HSC Building
 Rehabilitation of 2-storey DND Building
 Rehabilitation of 2-storey SOT Barracks
 Rehabilitation of CENTCOM Motor Pool
Construction of facilities of OCD Regional Office IX OCD 8,983,451.31
Construction of OCD Regional Office II and equipment OCD 7,207,383.85
Construction of OCD Regional Office II OCD 15,914,999.75
Total ₱73,929,934.91

14.4.2 Fund transfers in the aggregate amount of ₱120,271,283.91 made to various


Implementing Agencies, notwithstanding that these agencies have previous
unliquidated fund transfers is not in accordance with Section 4.1.2 of COA
Circular No. 97-002 which states that: “No additional cash advances shall
be allowed to any official or employee unless the previous cash advance
given to him is first settled or a proper accounting thereof is made.”

14.4.2.1 The following agencies have existing unliquidated fund transfers


from DND:

Year the
fund Balance/Amount of
Purpose Total
transfers Funds transferred
were made
AFP-GHQ
 Petroleum, Oil & Lubricants 2013 ₱ 17,258,805.25
 Petroleum, Oil & Lubricants 2014 5,449,500.82
 Petroleum, Oil & Lubricants 2014 1,500,000.00
 Petroleum, Oil & Lubricants 2014 30,037,431.90 ₱ 54,245,737.97

Phil. Army
 Implementation of DRRO Programs 2012 ₱ 4,331,213.87
 Acquisition of various equipment 2012 3,658,183.00
 Training 2013 3,406,215.25
 Acquisition of medical equipt. 2013 8,897,447.80
 Acquisition of medical equipt. 2013 3,487,900.00
 Repair/rehabilitation of PA facilities 2013 55,727,087.70
 Repair of damaged facilities 2013 5,307,150.00
 Acquisition of water rescue equipment 2013 25,563,480.00 110,378,677.62

Phil Air Force


 Implementation of DRRO Programs and
Projects (Training) 2012 779,501.00
22
Year the
fund Balance/Amount of
Purpose Total
transfers Funds transferred
were made
 Recovery of Huey II 2012 16,169,096.51
 Implementation of DND-QRT Programs 2013 3,167,160.00 20,115,757.51

Phil. Navy
 Acquisition of various equipment 2012 388,200.00
 Procurement of rescue boats 2012 20,000,000.00
 Training 2013 2,242,550.40
 Acquisition of rubber boat & other equipt. 2013 9,961,478.00
 Repair of concrete pier in Caballo Island 2014 33,659,052.37 66,251,280.77

PMA
 Acquisition of collapsed structure search
& rescue equipment 2014 1,235,807.00 1,235,807.00

OCD
 Balance of fund transferred for
procurement of rubber boat &
repair/construction of NDRRM OPCEN 2008 519,032.28
 Purchase of rubber boat & construction of
RDMC 2 & 3 2008 13,014,327.00
 Supply & installation of powerhouse
generator & construction of regional
centers 2010 30,505,053.47
 Construction/repairs of Regional Offices 2012 80,000,000.00
 Procurement of basic disaster search &
rescue equipt. 2012 9,665,495.00
 Equipage of National & Regional Centers,
Procurement of Basic rescue Equipt. 2012 40,368,431.40
 Construction of various RDRRMCs 2014 29,816,000.00 203,888,339.15
Total ₱456,115,600.02

14.4.2.2 Notwithstanding the above however, additional fund transfers were


made to the following agencies during the year, as follows:

Purpose Agency Amount


Repair, maintenance and reconstruction of permanent AFP-GHQ ₱ 41,824,100.00
structures of CENTCOM
Construction of facilities of OCD Regional Office IX OCD 8,983,451.31
Construction of OCD Regional Office II and equipt. OCD 7,207,383.85
Construction of OCD Regional Office II OCD 15,914,999.75
Acquisition of DRRO PA 41,285,049.00
Acquisition of medical equipment PA 5,056,300.00
Total ₱120,271,283.91

14.4.3 The reasonableness of the cost of goods/equipment procured out of QRF is


doubtful due to overpricing noted in the purchase of the personal protective
equipment, medical supplies and bottled water by ₱1,967,062.44.
23
14.4.3.1 Section 36 of the revised IRR of RA 9184 provides in part that:“In
all instances, the procuring entity shall ensure that the ABC
reflects the most advantageous prevailing price for the
Government.”

14.4.3.2 Section 31 also provides that the ABC shall be the upper limit or
ceiling for acceptable bid prices.

14.4.3.3 COA Circular No. 85-55-A defines Excessive Expenditures as


expenditures that signifies unreasonable expense or expenses
incurred at an immoderate quantity and exorbitant price. It also
includes expenses which exceed what is usual or proper as well as
expenses which are unreasonably high, and beyond just measure or
amount. They also include expenses in excess of reasonable limits.
The price is excessive if it is more than the 10 percent allowable
price variance between the price paid for the item bought and the
price of the same item per canvass of the auditor. The price is also
deemed excessive if the discounts allowed in bulk purchases are
not reflected in the price offered or in the award or in the
purchases/payment document.

14.4.3.4 DND entered into contracts with the following suppliers:

Supplier Purpose
a. Oliveros Protective Equipment and
Procurement of Personal Protective Equipment
Maritime Supplies
b. Dane Degala Castillo Pharmacy Procurement of medicines and medical supplies
c. P.J. Cruz Construction & Trading Procurement of Purified Water

14.4.3.5 These suppliers were declared the Single Calculated and


Responsive Bidders and were awarded their respective contracts.

14.4.3.6 Comparison between the prices per contract and prices per audit are
shown below:

Supplier Particulars Actual Amount Amount per Variance


Audit*
Oliveros Protective ₱ 936,910.91 ₱ 496,510.00 ₱ 440,400.91
Procurement of Personal
Equipment and Maritime
Protective Equipment
Supplies
Dane Degala Castillo Procurement of medicines 927,238.80 233,916.57 480,535.28
Pharmacy
Procurement of medical 569,843.50 128,904.20 440,939.30
supplies
P.J. Cruz Construction & Procurement of Purified 891,000.00 498,600.00 392,400.00
Trading Water
TOTAL ₱3,324,993.21 ₱1,357,930.77 ₱1,967.062.44
*The amount per audit was arrived at by making comparison with approved POs of other government agencies and canvass from
other reputable suppliers
24
14.4.3.7 Although public bidding was conducted by DND for the above
contracts, their respective ABCs did not reflect the most
advantageous price for the government as required by Section 36
of the revised IRR of RA 9184.

14.4.3.8 The amount of ₱1,967,062.44 or lesser could have been saved by


DND, hat it made reference to the prices from other government
agencies and the prices of other reputable suppliers in setting its
ABC.

14.5 RA 10121 cites QRF as stand-by fund for relief and recovery programs in order that
situation and living conditions of people in communities or areas stricken by
disasters, calamities, epidemics, or complex emergencies, may be normalized as
quickly as possible.

14.6 It was recommended that the DND Management:

a) strictly implement the provisions of the GAA on the utilization of QRF;

b) refrain from granting additional fund transfers to IAs with outstanding


balances and closely monitor the liquidation of fund transfers so that the
purpose/s for which the fund transfers are made are immediately carried out
and fully implemented;

c) ensure that procurement out of QRF are strictly in accordance with RA


9184, particularly that for single calculated bidders; the ABC is reasonable in
amount by taking into consideration various factors in setting up the ABC
pursuant to the Procurement Manual and hold concerned personnel
administratively liable for failure to set reasonable ABCs for the projects;
and

d) refund the overpriced amount of ₱1,967.062.44.

15. The QRF of DepEd amounting to ₱3,345,689.62 had lapsed due to incorrect
assessment/validation of school site proposed for relocation/construction of classrooms
and lack of coordination between the Budget Section and Physical Facilities; thus, the
needs of recipient schools experiencing shortage of facilities caused by Typhoon Pablo
was not addressed.

15.1 DepEd Memorandum No. 104, s. 2011 dated April 27, 2011 states that the QRF is a
lump sum amount included in the DepEd budget exclusively appropriates as standby
fund to be used for the repair, rehabilitation, reconstruction, or replacement of school
buildings and facilities affected by calamities to normalize the situation as quickly as

25
possible. The Memo also discussed the guidelines and requirement for the claim of
QRF by schools affected by calamities such as fire, typhoons/floods and earthquake.

15.2 On December 4, 2012, various municipalities in the province of Compostela Valley


suffered from the onslaught of Super Typhoon Pablo causing loss of lives and
damage to properties including office buildings and furniture. The DepEd Central
Office (DepEd CO) released funds for the repair, rehabilitation and relocation of
school buildings and procurement of school furniture charged against the QRF. For
CY 2014, the Division of Compostela Valley (DepEd ComVal) received
₱169,567,069.21 from DepEd CO for the said purpose.

15.3 Review of the utilization showed that ₱156,482,760.08 was obligated for projects
implemented during the year. However, the unobligated balance of ₱13,084,309.13
has lapsed, ₱3,345,689.62 of which intended for the construction/relocation of school
building at Andap National High School, remained unimplemented.

15.4 It was informed that the construction/relocation of school building at Andap NHS was
deferred due to the finding of the Mines and Geosciences Bureau (MGB) that the site
or location of the school has high risk of flooding.

15.5 The situation implies an inadequate assessment of relocation site and lack of
coordination between the Budget Section and Division PFC/Engineer leading to the
non-implementation of DepEd ComVal priority projects and depriving the recipient
schools of the much needed facilities.

15.6 It was recommended that DepEd enjoin the Division PFC/Engineer to


strengthen the monitoring of project implementation and the Budget Officer to
monitor the efficient utilization of allotments reeived in line with the
government’s policy to deliver quality goods and services to the public through
efficient and effective spending of public funds and timely implementation of
programs and projects.

26
B. Local Government Units (LGUs)

The results of audit of LDRRM funds disclosed the following observations:

Non-conformity with RA 10121

16. Twenty-two LGUs failed to allocate funds for Local Disaster Risk Reduction and
Management Fund (LDRRMF) in the aggregate amount of ₱124,945,814.79 contrary to
Section 21 of Republic Act (RA) No. 10121; thus, there was no assurance that the
DRRM projects and programs of the concerned LGUs have been fully and effectively
implemented.

16.1 Section 21 of RA No. 10121 provides:

“The present Local Calamity Fund shall henceforth be known as the Local Disaster
Risk Reduction and Management Fund (LDRRMF). Not less than five percent (5%) of the
estimated revenue from regular sources shall be set aside as the LDRRMF to support
disaster risk management activities such as, but not limited to, pre- disaster preparedness
programs including training, purchasing life-saving rescue equipment supplies and
medicines, for post- disaster activities, and for the payment of premiums on calamity
insurance. The LDRRMC shall monitor and evaluate the use and disbursement of the
LDRRMF based on the LDRRMP as incorporated in the local development plans and
annual work and financial plan. Upon the recommendation of the LDRRMO and approval
of the sanggunian concerned, the LDRRMC may transfer the said fund to support disaster
risk reduction work of other LDRRMCs which are declared under state of calamity.

Below are the LGUs which failed to allocate LDRRM Funds:

Region No. of LGUs Amount


NCR 1 ₱ 93,787,000.00
CAR 1 10,000.00
Region I 2 8,570,874.88
Region IVA 5 15,227,965.26
Region IVB 2 355,231.90
Region V 6 6,994,742.75
Region VI 4 -Not indicated-
Region XIII 1 -Not indicated-
TOTAL 22 ₱ 124,945,814.79

17. The unexpended/unutilized/unobligated LDRRMF balances in the total amount of


₱3,048,997,505.28 of 183 LGUs in various regions was not transferred to the Special
Trust Funds (STF) which is not in keeping with Section 21 of Republic Act (RA) No.
10121.

17.1 Section 21 par. 3 of Republic Act (RA) No. 10121 provides that: “Unexpended
LDRRMF shall accrue to a special trust fund solely for the purpose of supporting
disaster risk

27
reduction and management activities of the LDRRMCs within the next five (5) years
xxx.”

Region No. of LGUs Amount


NCR 3 ₱ 1,992,846,481.89
CAR 15 9,240,000.00
Region I 24 65,527,400.18
Region II 8 65,702,926.34
Region III 9 208,216,049.83
Region IVA 23 220,555,533.37
Region IVB 2 2,490,460.66
Region V 20 129,792,564.90
Region VI 13 59,992,275.67
Region VII 7 13,787,664.94
Region VIII 21 44,500,534.97
Region IX 6 46,034,721.92
Region X 16 115,273,938.86
Region XI 2 5,424,312.73
Region XII 7 14,602,350.85
Region XIII 3 10,464,119.94
NIR 5 44,546,159.14
TOTAL 183 ₱3,048,997,505.28

18. The Local Disaster Risk Reduction and Management (LDRRM) functions of seven
LGUs were not efficiently and effectively discharged in accordance with the provisions
of RA No. 10121; thus, setting limits on the full attainment of the objectives of the fund
in the locality due to: (a) non-implementation of most of the projects in the Local
Disaster Risk Reduction and Management Fund Investment Plan (LDRRMFIP); (b)
lack of staff of MDRRMO; (c) charging of projects that are not in the LDRRMFIP; and
(d) non-utilization of donated funds received.

18.1 Section 12 of RA 10121 enumerates the various functions of Local Disaster Risk
Reduction and Management Office (LDRRMO) which were not carried out by the
following LGUs:

Region No. of LGUs


Region IVA 1
Region V 1
Region VI 1
Region XIII 2
NIR 2
TOTAL 7

18.2 It is worthy to mention that the balance of the donated funds received by an LGU in
Region 6 amounting to ₱11,396,743.79 was not programmed for any
Project/Activities/Programs (PAPs) to address the immediate relief and post-disaster
recovery of the typhoon victims and remained idle which defeated the purpose of the
donation.

28
19. There was no Local Disaster Risk Reduction and Management Office (LDRRMO)
created in 57 LGUs as required under Section 11 of RA No. 10121; thus, disaster risk
reduction and management activities and projects was not fully implemented and
monitored.

19.1 Section 11 of RA 10121 provides:

“Organization at the Local Government Level. - The existing Provincial, City, and
Municipal Disaster Coordinating Councils shall henceforth be known as the
Provincial, City, and Municipal Disaster Risk Reduction and Management Councils.
The Barangay Disaster Coordinating Councils shall cease to exist and its powers and
functions shall henceforth be assumed by the existing Barangay Development
Councils (BDCs) which shall serve as the LDRRMCs in every barangay. x x x”

19.2 The following LGUs did not organize their respective LDRRMO which will be
responsible for ensuring the protection and welfare of the communities during
disasters and emergencies:

Region No. of LGUs


CAR 10
Region I 3
Region IVA 1
Region IVB 1
Region V 9
Region VI 7
Region VII 3
Region VIII 2
Region IX 3
Region X 1
Region XI 3
Region XII 7
Region XIII 2
NIR 5
TOTAL 57

29
Non-conformity with COA Circular 2012-002

20. 112 LGUs failed to prepare or submit the LDRRMFIP for the projects and activities for
disaster mitigation, prevention and preparedness as required under Section 5.1.2 of
COA Circular 2012-002. Thus, time frames, sources of funds and expected output was
not explicitly defined.

20.1 Section 5.1.2 of the said circular states that, “A LDRRMFIP for the DRRM program
shall be prepared annually. It shall present the 30% allocation for QRF in lump-sum
and the allocation for disaster mitigation, prevention and preparedness with details
as to projects and activities to be funded. The LDRRMFIP shall also include under a
separate caption, the list of projects and activities charged to the unexpended
LDRRMF of previous years.”

20.2 The following table enumerates the number of LGUs per Region which failed to
prepare LDRRMFIP:

Region No. of LGUs


CAR 1
NCR 3
Region I 3
Region III 4
Region IVA 15
Region IVB 5
Region V 22
Region VI 4
Region VII 2
Region VIII 19
Region IX 6
Region X 14
Region XI 2
Region XII 8
Region XIII 4
TOTAL 112

21. Expenses for LDRRM activities, amounting to ₱31,792,359.72 were charged against the
QRF despite the absence of a declaration of state of calamity in 12 LGUs.

21.1 Section 5.1.3 of COA Circular 2012-002 states that, “The release and use of the
LDRRMF shall be supported by the following documents: a. Local Sanggunian
Resolution and the declaration of state of calamity for the QRF, b. LDRRMFIP for
projects and activities listed in the approved plan as incorporated in the local
development plan and annual work and financial plan.”

30
21.2 Below are the LGUs which charged their expenses against the QRF without
declaration of state of calamity:

Region No. of LGUs Amount


CAR 2 ₱ 3,920,000.00
Region I 2 180,000.00
Region III 1 -Not indicated-
Region IVA 1 5,980,000.00
Region IVB 1 402,004.42
Region VI 1 44,875.30
Region VII 1 35,000.00
Region VIII 2 1,323,680.00
Region IX 1 19,906,800.00
TOTAL 12 ₱ 31,792,359.72

22. The Report on Sources and Utilization of Disaster Risk Reduction Management Fund
(DRRMF) was not prepared and submitted by 278 LGUs; while the accounting and
reporting guidelines provided under Paragraph 5.1.5 of COA Circular No. 2012-002
dated September 12, 2012 were not observed rendering the evaluation of LDRRMF
plan, accomplishments and fund utilization difficult.

22.1 Section 5.1.5 of the COA Circular No. 2012-002 states that, “A Report on Sources
and Utilization of DRRMF shall be prepared and certified correct by the Local
Accountant. The LDRRMO shall submit the report on or before the 15th day after the
end of each month through the LDRRMC and Local Development Council (LDC) to
the COA Auditor of the LGU.”

Region No. of LGUs


NCR 1
CAR 21
Region I 27
Region II 16
Region III 6
Region IVA 22
Region IVB 5
Region V 21
Region VI 20
Region VII 16
Region VIII 37
Region IX 19
Region X 20
Region XI 6
Region XII 6
Region XIII 22
NIR 13
TOTAL 278

23. Proper inventory, storage and monitoring of all procured supplies, materials, and
rescue equipment intended for disaster preparedness and response as well as rescue
operations were not strictly observed by the City Disaster Risk Reduction and
31
Management Office (CDRRMO) of eight LGUs in violation of COA Circular No. 2012-
002.

23.1 Section 5.1.7 of COA Circular No. 2012-002 provides that, “Equipment purchased
for disaster response and rescue operations or activities shall be recorded in the
General Fund books of accounts”.

23.2 Section 5.1.9 thereof also states that, “Small items purchased for disaster response
and rescue activities, which do not qualify under the equipment classification, shall be
recorded as Inventories under the appropriate inventory account. Issuance of these
small items to end users shall be covered by an Inventory Custodian Slip.

Region No. of LGUs


Region IVA 3
Region IVB 3
Region VIII 1
Region X 1
TOTAL 8

Non-conformity with DILG Memoranda

24. LDRRMF in the total amount of ₱244,996,732.95 was spent by 16 regions for activities
which are not disaster risk management related, instead of charging the same against
their regular appropriations.

24.1 This is violative of DILG Memorandum Circular No. 2012-73 which states that, “The
LDRRMF is to be used for disaster risk management activities, support to other
affected LGUs and quick response fund or stand-by fund for relief and recovery
programs.”, thus said expenses/transactions of the following LGUs are considered
irregular.

Region No. of LGUs Amount


NCR 1 ₱ 546,596.83
CAR 11 13,680,000.00
Region I 11 4,409,419.00
Region II 7 -Not indicated-
Region III 3 26,655,670.64
Region IVA 19 56,717,782.82
Region IVB 1 1,624,548.00
Region V 11 54,705,099.34
Region VI 19 9,980,467.38
Region VII 3 1,217,956.57
Region VIII 8 23,027,259.57
Region IX 8 44,759,945.51
Region X 4 1,532,057.02
Region XI 6 601,158.91
Region XIII 6 3,954,101.29
NIR 6 1,584,670.07
TOTAL 124 ₱ 244,996,732.95
32
25. 5 LGUs were not able to utilize the 70 percent Mitigation Fund of the LDRRMF
amounting to ₱92,207,761.52 in contravention of DILG Memorandum Circular No.
2012-73.

25.1 DILG Memorandum Circular No. 2012-73 states that, “70% of the 5% LDRRMF may
be utilized to procure early warning systems, preparedness equipment and other
equipage”.

Region No. of LGUs Amount


Region IVA 3 ₱ 83,056,761.52
Region V 1 4,471,000.00
NIR 1 4,680,000.00
TOTAL 5 ₱ 92,207,761.52

Non-conformity with P.D. 1445

26. Disbursements/Claims/Procurement of twelve LGUs amounting to ₱19,355,076.35 were


not supported with the required documents and other requirements, provided under
Section 4.6 of PD 1445, which states that, “claims against government funds shall be
supported with complete documentation.”, thus rendering the validity and propriety of
claims doubtful.

Region No. of LGUs Amount


NCR 1 ₱ 4,526,745.00
Region I 1 2,500,000.00
Region IVA 2 5,394,840.00
Region V 3 2,500,000.00
Region VI 2 2,553,987.00
Region VII 1 31,454.50
Region X 1 203,049.85
Region XI 1 645,000.00
NIR 1 1,000,000.00
TOTAL 12 ₱ 19,355,076.35

26.1 The failure of the above-listed LGUs to submit the required supporting documents is
not consistent with the principle on transparency and accountability which rendered
doubtful the reliability of the financial data on disaster funds.

27. The Local Chief Executives of the concerned LGUs are recommended to undertake the
following activities:

 comply with the statutory appropriation of not less than 5% of estimated revenue
from regular sources to obtain sufficient funds to carry out the disaster risk
management activities and attain the objective of RA 10121;

33
 require their Chief Accountant to transfer the unexpended/unobligated balance to
STF in compliance with Section 21 of RA 10121;

 to program the utilization of donated funds nad implement the approved PPAs to
maximize the utilization of LDRRMF to fully achieve the benefits of the
programs;

 organize a LDRRMC as required under Section 11 of RA No. 10121;

 prepare a LDRRMFIP with the details of the funded projects and activities for
disaster mitigation, prevention and preparedness in the DRRM investment plan
pursuant to 5.1.2 COA Circular No. 2012-002 dated Sept 12, 2012;

 refrain from charging expenses against QRF without resolution and declaration of
state of calamity as required under Section 5.1.3.1 of COA Circular 2012-002
dated September 12, 2012;

 require their concerned officials to prepare and submit a duly certified Report on
Sources and Utilization of LDRRMF within the period prescribed, which is on or
before the 15th day after the end of each month, in compliance with Section 5.1.5
of COA Circular No. 2012-002 dated September 12, 2012.

 instruct the accountant to adhere strictly to Sections 5.1.7 and 5.1.9 of COA
Circular 2012-002.

 strictly abide with the provision of DILG Memorandum Circular No. 2012 -73 and
refrain from incurring and charging expenses not related to disaster risk
reduction management activities to DRRM fund.

 abide with DILG Memorandum Circular No. 2012-73 in utilizing the 70%
Mitigation Fund.

 ensure complete documentation before processing disbursements and liquidation


of cash advances in compliance with Section 4(6) of PD 1445.

34
STATUS OF IMPLEMENTATION OF PRIOR YEARS’ AUDIT RECOMMENDATIONS

We have followed-up the actions taken by the agency to implement the prior years’ audit recommendations and the results of our
validation are as follows:

No. of Recommendations Status of Implementation


2 Fully Implemented
8 Partially Implemented
4 Not Implemented
14 Total

Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
1. Five infrastructure projects totaling Consolidated DILG - As of February 11, 2016, out
P6,368,782,496.00 implemented by Report CY 2014 of the 1,079 projects, 619 (57.37
the Department of Social Welfare and p.15 percent) projects were already
Development (DSWD), Department of completed, 323 (29.94 percent)
the Interior and Local Government projects were on- going construction
(DILG) and Philippine Institute of 88 (8.1 percent) projects were under
Volcanology and Seismology procurement process 32 (2.97
(Phivolcs) were not completed nor percent) are still under POW
started within the specific contract preparation/ revision. There are three
time due to delayed release of funds, subprojects that were cancelled and
non-coordination and monitoring; the fund allocation was realigned to
thus, deprived the public of the more necessary subprojects.
immediate and maximum use of the
said projects.

35
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
The following courses of actions were
recommended:

a. DILG to closely monitor the project - For RAY Batch 1, as of December Partially
implementation and require the 31, 2015 323 subprojects were Implemented
concerned LGUs to hasten the completed or 94 percent and the
completion of subprojects in order to remaining 20 subprojects are on-
facilitate the rehabilitation and going.
returning to normalcy of government - 310 Partially damaged subprojects
services and economic activities in were implemented by DILG and 13
their respective areas; totally damaged subprojects were
implemented by DPWH
- Originally, RAY Batch 2 projects
have 3,688 subprojects but due to
realignment of some projects, it was
reduced 3,626
- As of December 30, 2015, the status
of subprojects follows:
 566 or 16 percent completed;
 1001 – on- going
 1449 – under procurement;
and
 560 under preparation
b. DSWD to require and demand the DSWD - Submission of the project Fully
monthly report on fund utilization of terminal and fund utilization reports Implemented
the partner LGU on the status of the for compliance by the LGU during
implementation of the Pilot the final inspection.
Evacuation Center cum Multi-Purpose - LGU already completed the
Center and require the FO point person utilization of DSWD Fund. The
to submit a monitoring and inspection construction is only having finishing
36
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
report regularly on the project touches using the LGU counterpart.
implementation for the NPMO
management decision making; and,

c. Phivolcs to prepare a written criteria Phivolcs -The copy of Final Partially The project is still
for the selection of new sites for document criteria for Implemented ongoing at the
deployment of new landslide sensor site selection have been furnished to target date – the
system to serve as basis for COA date is on CY
scoring/evaluation of all surveys made 2017
with the end-view to hasten and
facilitate the identification of possible
sites and coordinate/collaborate
effectively with University of the
Philippines (UP) to fast-track the
manufacture and delivery of needed
sensors and data loggers to ensure that
the newly-deployed and installed
sensors will be able to communicate
with the PhiVolcs data computers and
evaluate results.

2. The lack of appropriate work program Consolidated


of DILG that is responsive to disaster Report CY 2014
risk reduction management and p. 16
climate change adaptation
(DRRM/CCA) and the lack of related
coordinative activities among the
implementing offices resulted in the
underutilization of Disaster Risk
Reduction and Management Funds
(DRRMF) with 18.82 per cent
37
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
utilization rate and 9.03 per cent
absorptive capacity because the road
map for Disaster Preparedness has not
been presented/ developed by the
DILG as vice chairperson of the
National Disaster Risk Reduction
Management Council (NDRRMC).

Regional Implementation
The failure to evaluate properly the
project design on debris management
under Task Force Pablo of the
Proponent LGU in Region XI resulted
in funded projects with unattainable
implementation scheme.

We recommended that Management


present:

a. Disaster Preparedness framework - The National Disaster Preparedness Partially The NDPP and
envisioned in the NDRRMC Plan as Plan (NDPP) and Minimum Implemented Standards are set
the road map for “Enhancing LGU Standards was drafted and approved for printing and
Capacity on DRRM-CCA” and, in July 2015 by the NDRRMC. The distribution on the
NDPP sets framework for the first semester of
members of the Preparedness FY 2016
Thematic Are and sets “Coordination
Mechanism and Ways of Working for
Disaster Preparedness”.

38
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
b. Requires the PMO to develop a work - An operations Manual is also being Partially The operation
plan responsive to DRRM-CCA drafted to strengthen the internal Implemented manual is for
(preparedness) with coordinated systems and organization of the finalization and
activities of the implementing offices Outcome group to improve approval.
and the regions. implementation.
Further, we recommended that
management designate a team within
Project Management Office (PMO), that
will coordinate with LGA and other
DILG Bureaus and which shall be
responsible for facilitation, assessment,
consolidation and monitoring of all
matters relating to the DRRM-CCA Plan
3. Only P 4,620,654,581.86 or 62 percent Consolidated
of the P 7,453,732,576.08 QRF Report CY 2014
transferred to various implementing p. 22
agencies was utilized due to
inadequate planning, delayed release
of SARO and downloading to field
offices, incompatibility with the
mandate of the agency and delay in
procurement process resulting in
wastage of government resources,
delay in the implementation of
projects, depriving the communities
with the much needed rehabilitation.

39
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
The following courses of actions were
recommended:

a. The officials of the concerned source


agencies closely monitor the
utilization of fund transfers so that
the purpose for which the transfers
are made are immediately carried out
and fully implemented;

b. The concerned officials of DA DA – Conducted site visitation and Partially


ensure that funds released are fully coordinate with the LGU and Implemented
utilized to benefit the typhoon beneficiaries.
affected farmers to assist them in - Led the casual monitoring of
rehabilitating their farms and recover milkfish input assistance project.
their losses; - Ensured compliance of the audit
recommendation by fully utilizing the
funds released to them.

c. The concerned officials of OCD OCD - Specific guidelines for the use Not
make representation with the DBM, of OCD- QRF had been drafted. Implemented
through the DND, for the
reassessment of the allocation of the
QRF taking into account the
functions of each of the
implementing agencies of the
NDRRM, as defined under RA No.
10121, with the view of providing
only what is necessary in the
performance of their functions, the
40
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
OCD in particular to ensure that the
government resources are utilized to
the optimum level to the advantage
of those victimized by calamities;

d. The concerned officials of DSWD to - A total of 419,451 families Fully Management


return the unutilized fund for MRRB (92.40%) costing P7.4 billion out of Implemented implements the
to DILG; and henceforth refrain the total target of 453,968 (target veto of the
from receiving fund transfers until based on the approved CRRP) has President to use
the conditions of such fund transfers availed the ESA. the QRF for
have been complied with; - QRT at the DSWD-CO and levels prepositioning
organized and deployed to LGUs to
assist in the payout and/or project
implementation.

e. The concerned officials of DSWD - Forged a tri- partite agreement with


institute procedures to expedite the the DILG and Ugnayan ng Bayan at
release/distribution of ESA to the Simbahan (UBAS) for the monitoring
prioritized recipients and to and validation of ESA
coordinate with the OSEC for the complaints/grievance for appropriate
immediate release of the additional action.
ESA to pay the remaining qualified
beneficiaries of the financial
assistance due them;

f. The concerned officials of DSWD DSWD - officials conducted Not The LGU failed
impose strictly the stipulations in the meetings with the beneficiaries to Implemented to prepare
MOA regarding committed comply with the stipulations on the proposal and to
responsibilities of all the parties Memorandum of Agreement. provide progress
involved in the implementation of report despite of
the CSAP to achieve fully the the demand made.
41
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
benefits and operating objectives of
the program; and

g. The concerned officials of DepEd


ensure the optimum utilization of
funds received through timely
releases of SARO to operating units
and consider releasing sub-allotment
order on the basis of cost allocation
per damaged school to the recipient
operating units as their authority to
implement the repairs, rehabilitation,
or replacement of damaged school
buildings and facilities affected by
calamities for the efficient utilization
and completion of projects to
normalize as quickly as possible the
situation of communities needing
much of the availability of learning
facilities.
4. The utilization of funds transferred to Consolidated
various implementing agencies Report CY 2014
amounting to P128,091,450.00 was not p. 24
consistent with QRF as stand-by fund.

We recommended that the concerned Not Reiterated in CY


officials of DND strictly implement the Implemented 2015 AAR
provisions of the GAA on the utilization
of the QRF.

42
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
5. Donations in the aggregate amount of Consolidated
P850,228,982.41, which were received Report CY 2014
by OCD and DSWD from foreign and p. 25
local donors were not utilized in full,
depriving the calamity victims of the
much needed assistance to alleviate
their difficulties.

The following courses of actions were


recommended:

a. The concerned officials of OCD to:


 ensure that donations are utilized
for the intended purpose in a
timely manner and facilitate the
early determination of the actual
number of affected victims and
their immediate needs for the
purpose of ensuring the
improvement of their living
conditions; Drafted a policy on the
usage of donations.
 revisit DND Memorandum Order
No. 1 and NDCC Memorandum
Order No. 13 with the end view of
aligning them with the provisions
of RA 10121 for an effective
administration of cash donations,
with focus on the concerns of the
calamity victims;

43
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
 formulate a comprehensive plan, Drafted a policy on the usage of
to be recommended to NDRRMC, donations
which contains the specific
rulings and procedures on how to
utilize the donations in
accordance with the functions of
each member of the council, i.e.
DSWD for distribution of relief
good, DPWH for repair and
rehabilitation of infrastructure;
and

b. The concerned officials of OCD and OCD - prepared the documents for Partially For decision and
DSWD remit to the Bureau of remittance Implemented approval of the
Treasury the unutilized balance after council.
the purpose has been served

6. The procurement and acceptance by Consolidated


DSWD of relief goods was made Report CY 2014
without considering the absorptive p. 26
capacity and condition of the
warehousing facilities and personnel,
available stocks, shelf life or expiry
dates and the actual needs of Field
Offices (FOs) resulting in
undistributed and expired or about to
expire relief goods amounting to
P5,115,200.00.

44
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
It was recommended and the Secretary
agreed to direct the concerned DSWD
officials to:

a. prioritize and fast track the - On-going construction of warehouse Partially


distribution of the remaining relief in FO III and FO V, while warehouse Implemented
goods especially those food items in FO XI is completed but need addl.
soon to expire, otherwise, these will fund for completion.
be damaged/spoiled that would result
to wastage of government funds;

b. transfer immediately the relief food - Construction of additional Partially CO & FO V


items to any other storage area warehouse at NROC Ground- Implemented with similar
suitable for storing perishable goods breaking was conducted in Oct. 5, observation in
in order to avoid early deterioration 2015 and inauguration of mechanized 2015 ML
and spoilage of the food items that system at NROC in Sept.30, 2015 regarding the
may likewise result in wastage of spoilage/ dented
government funds; Goldcup
Sardines.

c. consider, among others, the - DBM approves additional Admin


following factors in its future costs for warehouse rental under
procurement and acceptance of relief SARO-BMB-B-15-0005609 dated
goods to meet the objective of the May 12, 2015.
procurement and prevent - FO VII request for additional
overstocking and/or expiration: (i) warehouse personnel was approved
absorptive capacity and condition of by the HRDB and currently on
the warehousing facility and process at FMS.
personnel to accommodate procured - Enhancement was already
items; (ii) availability of goods prior finished and waiting for further
to the procurement of additional instruction from IMB on the
45
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation
relief items based on the needs of the effectivity of its implementation.
disaster affected FOs or let the
DSWD FOs do their own
procurement and make them
responsible and accountable for the
same; and (iii) shelf-life or expiry
date of goods to be procured and
distributed to recipient beneficiaries;

d. observe proper procurement - DBM approves additional Admin


planning and monitoring of relief costs for warehouse rental under
goods for the procurement and SARO-BMB-B-15-0005609 dated
distribution to the intended May 12, 2015.
beneficiaries that would aid in - FO VII request for additional
making decision as to the necessity warehouse personnel was approved
of procuring additional relief goods by the HRDB and currently on
during disaster relief operations so process at FMS.
that huge balances of stocks after - Enhancement was already
each relief operation could be finished and waiting for further
avoided and to ensure efficient and instruction from IMB on the
effective delivery of the relief goods; affectivity of its implementation.

e. consider reducing the inventory level - Reviewing the current system for Not
of relief goods commensurate with revision to consider the Implemented
the actual requirements of the FOs recommendation.
and avoid placing POs after the
critical period of relief operation to
avoid huge balances of inventories;
and
46
Reason for
Status of
Observations and Recommendations Reference Management Action Partial/Non
Implementation
Implementation

f. Assign additional personnel during


relief operations to properly and
collectively store/pile the goods
received from various sources to
prevent its immediate
spoilage/deterioration and to
facilitate efficient monitoring and
reporting of the status of relief
operation.

47
Acknowledgement

We wish to express our appreciation to the Auditors of various national and local government
agencies that provided the financial data and observations on DRRM management in their respective
audited agencies and to the management and staff of the Office of Civil Defense for their cooperation
and assistance.

We request that appropriate actions be taken on the various audit recommendations


consolidated in this Report.

48
ANNEX A

NATIONAL GOVERNMENT SECTOR


STATUS OF FUND PER GAA
As of December 31, 2015

RECEIPTS Unutilized Balance,


Utilization 12/31/2015
Agency TOTAL
[d] (a-d) or (c-d)
Beginning Balance, 12/31/2014 Amount [e]
Reference
[a] [c]
Prior Years

Department of Public Works and Highways 36,624,454.88 63,174,320.97 99,798,775.85 97,747,459.60 2,051,316.25

TOTAL 36,624,454.88 63,174,320.97 99,798,775.85 97,747,459.60 2,051,316.25


CY 2015 Receipts
Department of Budget and Management - SARO-ROVIII-15-0018633 6,115,500.00 6,115,500.00 6,115,500.00 -
Department of Finance (Bureau of Treasury) - BMB-C-15-0017971 527,075,197.00 527,075,197.00 527,075,197.00 -
NCA-BMB-D-15-0017517
Department of National Defense (Philippine Navy) - 51,898,511.00 51,898,511.00 51,898,511.00 -
NCA -BMB-D-15-0016378
- SARO No. BMB-B-15-0006128 50,000,000.00 50,000,000.00 50,000,000.00 -

NCA-BMB-B-15-0011142 170,000,000.00 170,000,000.00 27,886,356.18 142,113,643.82


NCA-BMB-B-15-0011085 591,980,235.00 591,980,235.00 491,500,494.00 100,479,741.00
Department of Social Welfare and Development SARO No. BMB-B-15-0004886 1,198,997,409.00 1,198,997,409.00 1,108,032,800.00 90,964,609.00

SARO No. BMB-B-15-0017256 662,500,000.00 662,500,000.00 539,132,524.00 123,367,476.00

SARO No. BMB-B-15-0019326 662,500,000.00 662,500,000.00 332,956,701.52 329,543,298.48

DOST (ASTI) - SARO-BMB-E-15-0012026 17,600,000.00 17,600,000.00 17,528,000.00 72,000.00


Department of Energy (NEA) NCA-BMB-C-16-0004382 803,980,000.00 803,980,000.00 803,980,000.00
A-15-0001769 16,855,363.25 16,855,363.25 16,855,363.25 -
A-15-0003573 135,455,760.00 135,455,760.00 135,455,760.00
A-15-0021674 243,194,000.00 243,194,000.00 243,194,000.00
A-15-0001791 5,864,277.34 5,864,277.34 5,864,277.34
Department of Public Works and Highways A-15-0002871 214,357,583.37 214,357,583.37 198,745,993.09 15,611,590.28
A-15-0008102 17,687,340.00 17,687,340.00 2,507,614.92 15,179,725.08
2015-07-006107 17,315,100.00 17,315,100.00 17,315,100.00 -
A-15-0004162 7,500,373.49 7,500,373.49 7,500,373.49 -
A-15-0009462 45,439,755.85 45,439,755.85 45,439,755.85 -
BMB-E-15-0011235 699,500.00 699,500.00 699,500.00 -
BMB-E-15-0011236 58,500,000.00 58,500,000.00 56,528,577.58 1,971,422.42
BMB-E-15-0011237 106,670,000.00 106,670,000.00 5,655,120.00 101,014,880.00
BMB-E-15-0011238 915,000.00 915,000.00 914,750.00 250.00
Department of Agriculture BMB-E-15-0011239 7,200,000.00 7,200,000.00 3,644,627.04 3,555,372.96
BMB-E-15-0011240 17,815,500.00 17,815,500.00 3,542,141.00 14,273,359.00
NCA-BMB-E-15-0009280 22,322,800.00 22,322,800.00 22,289,115.96 33,684.04
SARO-BMB-E-15-0006226 110,515,860.00 110,515,860.00 107,965,707.45 2,550,152.55
BMB-E-15-0011231 5,180,000.00 5,180,000.00 4,625,060.89 554,939.11

TOTAL - 5,776,135,065.30 5,776,135,065.30 3,646,354,884.22 2,129,780,181.08


GRAND TOTAL 5,875,933,841.15 3,744,102,343.82 2,131,831,497.33
ANNEX A
NATIONAL GOVERNMENT SECTOR
STATUS OF QUICK RESPONSE FUND
As of December 31, 2015
AMOUNT TRANSFERRED TO OTHER AGENCIES/ UNUTILIZED BALANCE,
TOTAL
RECEIPTS UTILIZATION LGUs/GOCCs 12/31/15
AGENCY NAME (a+b)
Beginning Balance, 12/31/2014 [b] [d] Amount (c-d-e)
[c] Name of Agency Purpose
[a] [e] [f]
Prior Years
Department of National Defense 277,696,118.10 277,696,118.10 101,000,549.68 various various 104,356,284.16 72,339,284.26
Office of Civil Defense 507,779,203.90 507,779,203.90 507,765,970.00 13,233.90
Department of Transportation and
991,396,000.00 658,500,000.00 1,649,896,000.00 891,433,262.65 758,462,737.35
Communication
Department of Public Works and
39,697.37 47,019,200.00 47,058,897.37 47,014,430.85 44,466.52
Highways
DOH 387,133,265.75 387,133,265.75 387,133,265.75
TOTAL 2,164,044,285.12 705,519,200.00 2,869,563,485.12 1,547,214,213.18 104,356,284.16 1,651,570,497.34 1,217,992,987.78
CY 2015
Department of National Defense 352,500,000.00 352,500,000.00 OCD 15,914,999.75 336,585,000.25
Office of Civil Defense 530,000,000.00 530,000,000.00 64,014,951.16 465,985,048.84
Department of Education 1,000,000,000.00 1,000,000,000.00 various various 125,674,070.19 874,325,929.81
Department of Social Welfare and
1,325,000,000.00 1,325,000,000.00 1,187,800,833.57 137,199,166.43
Development
Department of Public Works and
1,000,000,000.00 1,000,000,000.00 207,680,680.59 792,319,319.41
Highways
Department of Transportation and
1,000,000,000.00 1,000,000,000.00 1,000,000,000.00
Communication
DOH 500,000,000.00 500,000,000.00 397,850,000.00 102,150,000.00
DA 500,000,000.00 500,000,000.00 500,000,000.00
NIA 500,000,000.00 500,000,000.00 286,463,258.07 213,536,741.93
TOTAL - 6,707,500,000.00 6,707,500,000.00 2,143,809,723.39 141,589,069.94 2,285,398,793.33 4,422,101,206.67
GRAND TOTAL 3,691,023,936.57 - - 245,945,354.10 3,936,969,290.67 5,640,094,194.45
ANNEX A

NATIONAL GOVERNMENT SECTOR


STATUS OF CASH DONATIONS
(Received form Foreign/Local/CSOs)
As of December 31, 2015

TOTAL UNUTILIZED BALANCE,


Beginning Balance, 12/31/2014 Receipts DONATIONS UTILIZATION 12/31/15
Agency
[a] [b] (a+b) [d] (c-d)
[c] [e]
Prior Years
Office of Civil Defense 384,961,344.10 384,961,344.10 17,210,000.00 367,751,344.10
Department of Social Welfare and
179,224,600.97 10,866,202.64 190,090,803.61 25,685,866.49 164,404,937.12
Development
TOTAL 564,185,945.07 10,866,202.64 575,052,147.71 42,895,866.49 532,156,281.22
CY 2015
Department of Social Welfare and
559,988.70 559,988.70 559,988.70 -
Development
Office of Civil Defense 22,305.00 22,305.00 20,000.00 2,305.00
TOTAL - 582,293.70 582,293.70 579,988.70 2,305.00
GRAND TOTAL 11,448,496.34 575,634,441.41 43,475,855.19 532,158,586.22