STATE AUDITORS have flagged the Davao City government for P6.45 million in expenditures in 2022 which are deemed inappropriately charged against its development fund.
“Expenditures totaling P6.45 million were inappropriately charged against the 20% development fund, not in accordance with the guidelines set forth under the DBM-DoF-DILG joint memorandum circular no. 1,” the Commission on Audit (CoA) said in its compliance audit report on local government units (LGUs).
The joint circular issued in 2020 by the Departments of Budget and Management, of Finance, and of the Interior and Local Government contained guidelines and policies in utilizing the development fund.
In the case of Davao City, P6.45 million of the development fund was spent on the following: financial assistance to centenarians (P3.2 million), sports festival prizes and other fees (P1.53 million), basketball venue rental (P128,000), and food and catering services (P125,000).
In response, the city’s budget and accounting offices said their management misinterpreted that the flagged expenses were allowed “since they were not among the expenditure items enumerated in item 3.2.5. of [the] joint memorandum circular and they assumed that those items were for the general welfare.”
“Had the management properly identified the specific projects and carefully evaluated the corresponding expenditure items and ensured that these are allowed to be charged against the 20% development fund, the foregoing ineligible disbursements could have been avoided,” CoA also said in its report.
The management “reassured that they will align the calendar year 2023 and the succeeding budgets in compliance” with existing regulations for the fund. Davao City had a total development fund of P2.13 billion for 2022. — Beatriz Marie D. Cruz
