The Commission on Audit (COA) has denied the appeal of Catanduanes Gov. Joseph C. Cua and several other provincial officials who contested the P14.8 million disallowance on cash advances (CAs) used for intelligence and confidential (IC) activities in 2012 and 2013.
On Jan. 30, 2015, the COA disallowed the use of the funds for IC activities because "there was no concrete basis for the computation of the amount rightfully allotted for IC expenses."
The disallowance was issued against Cua, Officer-in-Charge Provincial Budget Officer Nena V. Guerrerro, Provincial Budget Officer Lucito G. Pastor, Provincial Accountant Sonia P. Villaluna, and Provincial Treasurer Julieta M. Tasarra.
The COA said its state auditors found that the annual budget of Catanduanes for the years 2012 and 2013 did not clearly indicate the amount appropriated for the peace and order program (POP).
Cua was then required to comment on the use of P14.8 million and submit several lacking documents that would support its use.
In response, Cua explained that the Provincial Peace and Order Council (PPOC) formulates and implements annually an Integrated Area/Community Public Safety Plan, which was embodied in the annual budget of the province, in lieu of POP.
He said that there was a clear appropriation of POP in the annual budget because it is commonly funded out of the 20 percent Development Fund, Calamity Fund, and the Maintenance and Other Operating Expenses (MOOE) of the different departments of the province.
However, the COA was not satisfied with Cua's explanation. It cited the letter of the Department of the Interior and Local Government (DILG) dated Aug. 29, 2008, which said that local government units (LGUs) must allocate funds for peace and order if it is considered a priority program.
"If no funds are allocated for peace and order concerns, it is understood that there is no need to utilize funds for intelligence purposes," the COA said.
"To determine the amount to be utilized for intelligence and confidential purposes, it shall be based on 30 percent of the peace and order allocation, or three percent of the annual appropriations, whichever is lower," it also said.
"In this case, the Annual Budget of the Province for 2012 and 2013 did not indicate any amount appropriated for POP. Following the foregoing view of the DILG, it can be presumed that the province did not see the need for utilizing funds for intelligence purposes. Due to the absence of the allocation for POP, the 'lower' amount cannot be determined because there is no basis for comparison," the COA ruled.
The seven-page ruling was dated July 27, 2023, but was released only recently. It was signed by Chairperson Gamaliel A. Cordoba and Commissioners Roland Cafe Pondoc and Mario G. Lipana.