Procurements totaling P73,946.

50 to implement COVID-19-related PPAs were not

in accordance with the Emergency Procurement Guidelines prescribed by
Government Procurement Policy Board (GPPB) Circular No. 01-2020 dated April
6, 2020 and Section 4 (6) of Presidential Decree (PD) No. 1445, thus the propriety
and validity of the transactions were not ascertained and the controls on
disbursements were defeated.

GPPB Circular No. 01-2020 dated April 6, 2020 provides:

“4. DOCUMENTARY REQUIREMENTS

4.1. PEs already maintaining a bidder’s updated file of any of the

following requirements, whether through the Philippine
Government Electronic System Certificate of Registration
and Membership or its own records, shall not require its re-
submission.

Otherwise, PEs shall require copies of:

a. Mayor’s or Business Permit;

x x x”

Section 4 (6) of PD No. 1445 states:

“Section 4. Fundamental principles. Financial transactions and

operations of any government agency shall be governed by the
fundamental principles set forth hereunder, to wit:

xxx

6. Claims against government funds shall be supported with

complete documentation.”

In view of the serious threats brought about by the Corona Virus Disease 2019
(COVID-19) on people’s lives, livelihood and the economy as a whole, the President
declared a State of Calamity throughout the Philippines through Proclamation No.
929 on March 16, 2020.

Relative thereto, the amount of P53,109.90 were made for the procurement of
relief goods to advance the Barangay’s capacity for the implementation of COVID-
19 related programs/projects/activities (PPAs).

Post audit of transactions unveiled that the supporting documents attached to

the disbursement vouchers were lacking of the Business Permit. The details are
presented in Table 1.
 Table 1. COVID-19 Related Procurements

Fund Checks Details

Amount
Source Date No. Particulars
Catering services for the
20% DF 05/28/2020 1037741 P 33,946.50
frontliners
Payment of goods for
Financial
05/13/2020 34924 distribution during COVID- 40,000.00
Assistance
19 pandemic
Total P 73,946.50

Aside from the incomplete supporting documents, the following deficiencies

were also noted, to wit:

1. Non-issuance of Appropriation Ordinance enacting the Supplemental

Budget for new PPAs not incorporated in the Annual Budget.

2. Requisition and Issue Slip (RIS) was not prepared for all the inventory
issuances.

3. The Inventory List of all procured items was not prepared and maintained to
monitor all the inventories received, issued and remained undistributed, if
any.

The practice of disbursing government funds despite incomplete documentation and

non-enactment of Appropriation Ordinance for Supplemental Budget rendered the
validity of transactions questionable.

We recommend that:

a. The Barangay Treasurer submit the lacking documentary requirements such

as the Business Permit. This is without prejudice to the issuance of Notices
of Suspension as a result of our audit;

b. The Sangguniang Barangay enact a Supplemental Budget to cover new

PPAs not incorporated in the Approved Annual Budget; and

c. Henceforth, secure a complete documentation on all disbursements to ensure

the validity and propriety of the disbursement transactions. Significantly,
adhere to the policy of non-payment of claims without complete
documentation.

May we have your comments on the foregoing audit observations within five (5)
calendar days from receipt hereof.