Metro Manila (CNN Philippines, July 3) — The Commission in Audit (COA) flagged the Office of the Vice President for (OVP) its lack of guidelines in “handling, monitoring and reporting on in-kind donations” which the audit body said resulted in delayed reporting and exposed the donations to the risk of loss and wastage.
The COA made the observation in its 2022 report published on the agency’s website on June 29.The lack of internal guidelines and systematic processes in handling, monitoring and reporting of in-kind donations resulted to various deficiencies such as: a) delayed submission of required-report on in-kind donations; b) non-posting of reports in OVP website; and c) late reporting and lack of supervision in the receipt and utilization of in-kind donations in OVP SOs,” said COA, referring to satellite offices. It noted that Circular No. 2014-002 was issued to give accounting and reporting guidelines when receiving and using the National Disaster Risk Reduction and Management Fund, which includes cash and in-kind donations received from both local and foreign donors.The agency added that OVP failed to submit the needed reports on time, with the delays ranging from four to 101 days.Non-compliance with the required deadline hampered the early detection of any flaw and opportunity of a timely audit that may serve as input in enhancing the Agency’s processes,” said COA.The COA added that the non-posting of the reports on the OVP website deprived the public of knowledge about the donations and how they were used.The lack of internal guidelines and processes in the receipt and utilization of in-kind donations, exposes these items to risk of loss and wastage, and a clear indication of inadequate internal control,” said COA, adding it was the OVP’s responsibility to install, implement, and monitor a sound system of internal control as indicated in Section 124 of Presidential Decree No. 1445 or the Government Auditing Code of the Philippines.The COA recommended the OVP submit required reports within the prescribed period, post the required reports on the OVP website, and establish a system to account for in-kind donations.
