The Commission on Audit has flagged the Cooperative Development Authority over its P65.74-million economic and financial assistance to cooperatives in Marawi City, Lanao del Sur affected by the five-month long war in 2017.
The CDA under the Office of the President reported releasing P65,737,242.30 in 2018 as seed capital for 104 existing cooperatives in Marawi.
Based on a 2018 audit report, only P1.516 million or a 2.3 percent was fully documented.
Disbursement vouchers and supporting documents for fund releases of P64.22 million or 97.7 percent were not submitted for audit.
“The validity and propriety of the total disbursements of P64,220,785.18… could not be ascertained due to the non-submission of the corresponding disbursement vouchers, including the supporting documents,” the report read.
The COA said that not even a registered list of cooperatives in Marawi City or the copies of the memorandum of understanding between the CDA and the beneficiary cooperatives was forwarded.
Under the Marawi City rehabilitation through cooperativism project, CDA suggested the reactivation of existing cooperatives to assist them in putting up business enterprises and provide livelihood training.
The disbursement records showed P16.89 million went to traveling expenses, catering services, office supplies, hotel accommodations, repair and maintenance, fuel expenses, salaries and other operational expenses.
CDA claimed P48.846 million was spent on “business and livelihood assistance” to 130 beneficiary-cooperatives.
Out of 379 disbursement vouchers supposedly covering the P65.737 sum spent, only 69 disbursement vouchers were submitted to COA.
The CDA’s accounting and finance units said the disbursement vouchers not submitted were returned to the Marawi City’s satellite office “for completion of supporting documents.”
“This indicates lapses in internal control since claims were paid without complete supporting documents. In some instance, checks for the purposes were released so some suppliers/payees by employees other than the acting disbursement officer or through employees who were on official travel in the area,” CoA said.
“The non-submission of the necessary documentation cast doubt on the propriety and validity of the transactions and hinder assessment on whether the undertaking was carried out… and is responsive to the needs of the targeted beneficiaries,” it noted.
The CDA said they submit all the disbursement voucher with complete supporting document as soon as possible.