The University of the Philippines and seven other state universities and colleges, have been ignoring demands by state auditors to liquidate or return over P613.19 million in funds under Disbursement Acceleration Program that was declared unconstitutional in 2014, the Commission on Audit has revealed.
UP has an outstanding balance of unliquidated or unreturned fund amounting to P462.35 million or 75.40 percent of the remaining balance.
The state university has reportedly refused to return or liquidate the said amount by invoking its fiscal autonomy, COA disclosed in the 2019 annual audit report for the Commission on Higher Education.
In the 2019 annual audit report for the Commission on Higher Education released recently, the COA called on the agency to demand the immediate liquidation or return of unexpended balance of the funds that were transferred to the eight SUCs.
“Of the remaining unliquidated Disbursement Acceleration Program (DAP) funds of P793,250,790.69 from the 13 SUCs, only P180,060,175.77 or 22 percent was settled by the five recipient SUCs,” COA said in the report
State auditors said this is contrary to the memorandum of agreement between CHED and the SUCs and Sec 634 of the General Accounting Manual for national government agencies.
Under the GAM, concerned agencies are required to return funds to the agency that granted the money if unused.
Audit records indicated that the CHED received DAP funds from the Department of Public Works and Highways, the Department of Social Welfare and Development and the Philippine Institute for Development Studies to finance various infrastructure and facilities upgrade during the administration of former President Benigno Aquino III.
The funds received by CHED were transferred in 2011 to 2012.
Grants-in-Aid for Research and Development and Extension were also funded by PIDs.
However, in 2014, the Supreme court declared as unconstitutional “some acts and practices under the DAP”.
However, COA stressed that the court recognized that the physical undoing of worth results by destruction would result in wastefulness, thus, can no longer be undone at the time the court decision was promulgated.
“These funds were transferred in CYs 2011 up to 2012, however, these remained unliquidated to date or seven to eight years from the date of transfer,” said COA.
Auditors stressed that the SUCs have the “responsibility to ensure that all transferred funds have been liquidated as provided by audit and accounting rules.
“Despite sending demand letters to April 10, 2019 to the University of the Philippines and Mindanao State Unversity and seeking the assistnace of the Offices of the chairperson and commissioners in retrieving reports from these SUCS, which have balances amounting to P462,351,071.17 and P135,417,477.20, respectively, said unversities did not fully settle their unliquidated balances to the CHED-CO,” noted COA.
The UP Board of Regents invoked its fiscal autonomy under the UP Charter and Republic Act No. 9500 and insisted that it will not return any unutilized funds.
Auditors warned that until UP and MSU are able to address the unliquidated funds, these will continue to be an issue against them.
In its response, the CHED committed to comply with the timely liquidation, accounting and reporting of transferred funds.
“It also explained that it is persistently demanding the return of the unexpended balance of the transferred funds,” COA disclosed.
UP has an outstanding balance of unliquidated or unreturned fund amounting to P462.35 million or 75.40 percent of the remaining balance.
The state university has reportedly refused to return or liquidate the said amount by invoking its fiscal autonomy, COA disclosed in the 2019 annual audit report for the Commission on Higher Education.
In the 2019 annual audit report for the Commission on Higher Education released recently, the COA called on the agency to demand the immediate liquidation or return of unexpended balance of the funds that were transferred to the eight SUCs.
“Of the remaining unliquidated Disbursement Acceleration Program (DAP) funds of P793,250,790.69 from the 13 SUCs, only P180,060,175.77 or 22 percent was settled by the five recipient SUCs,” COA said in the report
State auditors said this is contrary to the memorandum of agreement between CHED and the SUCs and Sec 634 of the General Accounting Manual for national government agencies.
Under the GAM, concerned agencies are required to return funds to the agency that granted the money if unused.
Audit records indicated that the CHED received DAP funds from the Department of Public Works and Highways, the Department of Social Welfare and Development and the Philippine Institute for Development Studies to finance various infrastructure and facilities upgrade during the administration of former President Benigno Aquino III.
The funds received by CHED were transferred in 2011 to 2012.
Grants-in-Aid for Research and Development and Extension were also funded by PIDs.
However, in 2014, the Supreme court declared as unconstitutional “some acts and practices under the DAP”.
However, COA stressed that the court recognized that the physical undoing of worth results by destruction would result in wastefulness, thus, can no longer be undone at the time the court decision was promulgated.
“These funds were transferred in CYs 2011 up to 2012, however, these remained unliquidated to date or seven to eight years from the date of transfer,” said COA.
Auditors stressed that the SUCs have the “responsibility to ensure that all transferred funds have been liquidated as provided by audit and accounting rules.
“Despite sending demand letters to April 10, 2019 to the University of the Philippines and Mindanao State Unversity and seeking the assistnace of the Offices of the chairperson and commissioners in retrieving reports from these SUCS, which have balances amounting to P462,351,071.17 and P135,417,477.20, respectively, said unversities did not fully settle their unliquidated balances to the CHED-CO,” noted COA.
The UP Board of Regents invoked its fiscal autonomy under the UP Charter and Republic Act No. 9500 and insisted that it will not return any unutilized funds.
Auditors warned that until UP and MSU are able to address the unliquidated funds, these will continue to be an issue against them.
In its response, the CHED committed to comply with the timely liquidation, accounting and reporting of transferred funds.
“It also explained that it is persistently demanding the return of the unexpended balance of the transferred funds,” COA disclosed.
