The Department of Tourism (DOT) overspent P2.6 million for its hotel accommodations in 2022, the Commission on Audit (COA) said in its annual audit report (AAR).

In its AAR, COA recommended that the DOT refund the excessive costs incurred by concerned officials and employees and strictly adhere to Executive Order No. 77 when preparing the Budget Estimate or Terms of Reference for the contracts of its programs and activities to avoid excessive expenditures for hotel accommodations and meals.

COA pointed out that Section 5 of Executive Order No. 77 provides the maximum allowable Daily Travel Expenses (DTE) to government personnel. These include local travel, hotel accommodation or lodging, meals, and incidental expenses including the cost for local or inland transportation.

It said that when state auditors reviewed 10 sample contracts from the DOT’s Office of the Secretary (OSEC) for the period of Jan. 1 to Aug. 31, 2022, they discovered that the rates provided in the Budget Estimate of eight contracts exceeded the amount prescribed under EO No. 77 by P1,547,913.80.

"It was concluded that the DOT OSEC's procurement of hotel accommodation/lodging was not in compliance in all material respects with the provisions of Section 5 of E.O. No. 77," the report said.

Similar observations were noted in the Cordillera Administrative Region (CAR) and Regions III and IX, it said.

The maximum amount allowed per audit for the OSEC was P539,000, but the actual expenses made by the OSEC was P962,679. The allowable amount for CAR was P267,300, but the region spent P560,630. Region III was allowed P1,267,500, but it spent P2,159,450, while Region IX was allowed P608,450 but spent P1,610,769.60. All in all, COA said the DOT overspent P2,611,278.60 for hotel accommodations and lodging.