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The Commission on Audit has flagged the Local Water Utilities Administration to return at least unused P121.58 million allocated for the potable water supply project to the Department of Health.
State auditors warned that LWUA’s failure to return the money would violate COA Circular No. 94-013 stating “the implementing agency shall return to the source agency any unused balance upon completion of the project.”
In a 2018 annual audit report, COA said of the P121-million unused budget, P23.3 million came from the excess funds of 37 completed water district projects and P98.27 million came from 14 water district projects that were not completed or non-operational.
It added LWUA disbursed excessive funds of P8.687 million to seven water districts.
Moreover, the commission called the attention of LWUA when it failed to secure final liquidation reports and credit notices from its regional offices in violation of Item 6 of the DOH-LWUA-Department of Budget and Management’s supplemental agreement.
LWUA was also questioned for a P59.469-million unauthorized reallocation of P59.469-million fund for a potable water supply project with the consent and approval of DBM and DOH.
“We recommended that management request a post-facto approval from DBM and DOH for realignment of funds, reprogramming of beneficiaries and excess disbursements of 8.687 million for the seven water district projects and return the unutilized P121.583 million to DOH and/or request for realignment to other projects if warranted,” the commission’s report read.
As far as the LWUA is concerned, its management said savings came from the implementation of different projects, adding the savings was used for completion of implemented projects with sufficient fund and fund for new programs the water districts’ request.
It blamed the water districts for failure to submit liquidation reports about their implemented projects.