Place Unused Calamity Funds to Special Trust, COA Says

The Commission on Audit has reminded the Cebu City Government to place unused calamity funds in a special trust fund instead of using it to pay other projects.

This matter is among the issues discussed by the state auditors in their Annual Audit Report for City Hall’s 2012 operations.

City Auditor Cymbeline Celia Chiong Uy found that as of December 31, some P105.3 million out of the entire calamity budget remained unused but was not transferred to the special trust funds.

Section 21 of Republic Act 10121 provides that “unexpended Local Disaster Risk-Reduction Management Fund shall accrue to a special trust solely for the purpose of supporting disaster risk reduction and management activities of the Local Disaster Risk-Reduction Management Council.”

The law further states that amount not fully utilized after five years shall revert to the general fund and will be available for other social services.

City Treasurer Emma Villarete said her office already started transferring some of the unused calamity budgets to the special trust funds to comply with the law.

“Naka-process na ta og transfer sa general fund to special trust fund, then naka-initial transfer na ta og amount. I think ongoing pa ang implementation sa projects nga na-funded ana kay mora’g ang sa 2011 wala pa gani mahurot,” Villarete said.

She said COA is just doing their job reminding the government officials of their responsibility for public accountability and transparency.