State audit examiners have questioned the Baguio City government in connection with its handling of over P100 million in funds to finance emergency programs aimed at addressing the adverse effects of the 2019 coronavirus disease (COVID-19) pandemic.

The Commission on Audit (COA) revealed its observations in the recently-released 2020 Annual Audit Report for the city government.

“Payments from the COVID 19-funds for operating expenses totaling P61,000,000.00 were disbursed through several cash advances to two Disbursing Officers without specific purpose, without proper supporting documentation and without ensuring that the previous cash advances were settled,” COA noted.

“Also, such cash advances were transferred to other Accountable Officers, thereby circumventing the rules in the grant of cash advances under COA Circular No. 97-002 dated February 10, 1997,” the report said.

The audit report was prepared by a team of auditors headed by Director Eden D. Tingson-Rafanan.

Mayor Benjamin Magalong, who is also the contact tracing czar in the national government program against COVID-19, received a copy of the report.

COA disclosed that the Baguio City government released P158.17 million to fund its various COVID-19 interventions that included the procurement of personal protective equipment for frontline service providers, medicines, vitamins and much-needed hospital supplies and equipment.

Two disbursing officers from the City Treasurer’s Office were appointed to handle P61 million that will finance the anti-COVID-19 programs.

Auditors noted that the disbursement vouchers covering the release of cash advances did not reflect the specific purpose for which the cash advances were granted.

“The absence of supporting documents, or even estimaters of quantities and description of the items to be procured out of the cash advances, indicated that the city government granted the cash advancdes without considering details of project requirements,” COA said.

The lack of specific purpose for the release of funds was “substantiated” when one of the disbursing officers refunded P4.2 million on October 16, 2020.

Reacting to the audit report, the city government pointed out that accounting and auditing rules were not strictly implemented due to the “extraordinary circumstances brought by COVID-19”.

Auditors also chided the city government for paying in cash, instead of checks, over P51.1 million supplies and services procured for the COVID-19 programs.

“Also the payments through cash, instead of through checks, or Automatic Debit Advice, added complications to the procurement process, contrary to Section 4 (k) of RA No. 11469 or the Bayanihan to Heal as One Act.” the audit examiners said.

City officials stressed that there was no intention on their part to violate rules and regulations in the procurement process.