Intelligence and Confidential Funds Audit Office 0060.00. Commission on Audit 2809080 072: Commonwealth Avenue, Quezon city fe het wiles Ser 21 2021 ‘Audit Team Leader ‘Commission on Audit Municipal Hell, Orion, Bataan 2102 DOMESTIC %«=0s7 REGISTERED RE 196 563 459 2Z CDEC Ow — AAARepublic of the Philippines COMMISSION ON AUDIT Office of the Chairperson Intelligence/Confidential Fund Audit Office (Commonwealth Avenue, Quezon City, Philippines NSSNo. 202t'-010! JUN 21 202 NOTICE OF SETTLEMENT OF SUSPENSION For: Honorable JOSE S. SANTOS. Former Municipal Mayor Orion Bataan Attention: Municipal Accountant Reference: NS No. = 2018-154-100(2013) Date Issued - November 26, 2018 Nature of Transaction - Cash advance on intelligence and confidential expenses of the Municipal Government of Orion, Bataan in the 1* Semester of Calendar Year 2013 Person responsible - 1. Hon. JOSE S. SANTOS In view of the submission of additional documentary requirements in compliance to the above NS by former Mayor JOSE S. SANTOS, which upon our evaluations, were found to be meritorious and in order. In view of the above, said NS and the related AOM are hereby settled. Relative thereto, the ICF cash advance below in the amount of P150,000.00 in the name of former Mayor JOSE S. SANTOS is hereby settled and which may now be taken up in the LGUs books of accounts as liquidation thereof. Page 1of 2[— Cheek No. | Check Date (2012) Amount (P) Payee ‘201146873 February 21 150,000.00 | JOSE S. SANTOS By Authority of the Chairperson: CSP ANA rector HT! (Ce: The Aut Team Leader Orion, Batsan RRSMGL June 24,2021 Page 2 of 2{intelligence and Confidential Funds Audit Office Commission on Audit Commonwealth Avenue, Quezon city Audit Team Leader Commission on Audit ‘Municipal Hall, Orion, Bataan 2102 "HE PHILIPPD perasTs. 0060.00, 8EDB585 or: PB74582 14.09. GEA Post off icedue DOMESTIC «70! REGISTERED RE 196 562 970 ZZ CUNEORepublic of the Philippines COMMISSION ON AUDIT Office of the Chairperson Intelligence/Confidential Fund Audit Office Commonwealth Avenue, Quezon City, Philippines 2021 9111-100 (201) JUN 21 202 NOTICE OF DISALLOWANCE For: Honorable JOSE S. SANTOS Former Municipal Mayor Orion, Bataan Attention: Municipal Accountant We have audited the liquidation reports and its supporting documents relative to the cash advance of P500,000.00 to defray intelligence and confidential expenses of that Municipal Government in CY 2011. We acknowledged receipt of your letter of May 17, 2019, together with additional documentary requirements in compliance to our NS No. 2018-152-100(2011) issued on November 26, 2018. ‘The same were all evaluated. ‘The amount of P350,000.00 is disallowed in audit due to the following grounds: 1. Failure of the Municipal Government to justify the excess ICF cash advance. In our NS, we required the Municipal Government to submit justifications and additional documents for the excess ICF cash advance in violation to Item II of DILG Memorandum Circular No. 99-65 dated April 23, 1999, computed as follows: Total POP for CY 2011 P500,000.00 ICF Rate X_ 30% ICF Allowable Ceiling for CY 2011 P150,000.00__ Total ICF Cash Advance in CY 2011 500,000.00 Over drawn ICF in 2011 (P350,000,00) In your letter, you explained and we quote: “I only assumed Office on July 2011, I was never informed nor educated by the Municipal Budget Officer that there was such a DILG Memorandum that came out in April 23, 1999, as a matter of fact I order the Municipal Budget Officer to make sure that the liquidation of the ICF is in order and pursuant to the Government Budget Law/Memorandum”.With respect to your assumption of office, records showed that then Mayor Santos assumed office from July 2010 to June 2013,hence, he was already the Municipal Mayor at the beginning of the CY 2011. We also would like to reiterate the provision in page 3 of COA Circular No. 22003-003 dated July 30, 2003, quoted as follows: “It shall be the responsibility of the Governor/Mayor to institute and maintain sound and effective intemal control measures to discourage and prevent irregular, unnecessary, excessive, extravagant and unconscionable expenditures, as well as promote prudence in the use of government resources by those involve in the intelligence/confidential operations”, In view of the above, it is the responsibility of the Head of the Agency who is also the Special Disbursing Officer to see to it the timely and proper management of intelligence and confidential funds, ‘The person below has been determined to be liable for the disallowed transaction: Name Position/Designation | Nature of Parti the © Authorized the disbursement of cash advance charged to ICF © Responsible for the disbursements of the intelligence and confidential funds * Failed to submit additional documentary requirements to substantially support the liquidations of ICF cash advance Former Municipal + JOSE S. SANTOS Mayor/SDO Please direct the aforementioned person liable to settle immediately the said disallowance. Audit disallowance not appealed within six (6) months from receipt thereof, shall become final and executory, as prescribed under Section 48 and 51 of P.D. 1445. By Authority of the Chairperson: LIPANA rector IIT! (Ce: The Audit Team Leader—LGU Orion, Bataan *Jenny/RRS/MOL June 5, 2021 JIntelligence and Confidentiat Funds Audit Office Commission on Audit Commonwealth Avenue, Quezon city ‘Audit Team Leader Commission on Audit Municipal Hall, Orion, "ye PHILIPPD Prosi 0060.00, wy 7453088 o7; 874582 14.091 (GOK Post off leeue Ser 21 2021 Bataan 2102 DOMESTIC ~~ =0=" REGISTERED RE 196 562 997 zz CDECRepublic of the Philippines COMMISSION ON AUDIT Office of the Chairperson Intelligence/Confidential Fund Audit Office Commonwealth Avenue, Quezon City, Philippines NDNo. 2921-0 12-100 (2012) JUN 2.1 2024 NOTICE OF DISALLOWANCI For: Honorable JOSE S. SANTOS Former Municipal Mayor Orion, Bataan Attention: Municipal Accountant We have audited the liquidation reports and its supporting documents relative to the cash advance of P500,000.00 to defray intelligence and confidential expenses of that Municipal Government in CY 2012. We acknowledged receipt of your letter of May 17, 2019, together with additional documentary requirements in compliance to our NS No. 2018-153-100(2012) issued on ‘November 26, 2018. The same were all evaluated. ‘The amount of P500,000.00 i isallowed in audit due to the following grounds: 1. Failure of the Municipal Govemment to submit computation on how they arrived at 550,000.00 ICF budget appropriations in CY 2012. Item 1.2 of DILG Memorandum Circular No. 99-65 dated April 23, 1999, provides: “Funds for Intelligence or Confidential purposes may be sourced from the: (a) appropriations for peace and order; or (b) total annual appropriations. Provided, that the total annual amount appropriated for intelligence or confidential undertaking shall not exceed thirty per cent (30%) of the total annual amount allocated for peace and order efforts or three pet cent (3%) of the total annual appropriations, whichever is Tower. In your letter, you explained and we quote: “L only assumed Office on July 2011, I was never informed nor educated by the Municipal Budget Officer that there was such a DILG Memorandum that came out in April 23, 1999, as a matter of fact I order the Municipal Budget Officer to make sure that the liquidation of the ICF is in order and pursuant to the Government Budget Law/Memorandum”. Page 1 of 3With respect to your assumption of office, records showed that then Mayor Santos assumed office from July 2010 to June 2013,hence, he was already the Municipal Mayor at the beginning of the CY 2012. We also would like to reiterate the provision in page 3 of COA Circular No. 22003-003 dated July 30, 2003, quoted as follows: “It shall be the responsibility of the Governor/Mayor to institute and maintain sound and effective intemal control measures to discourage and prevent irregular, unnecessary, excessive, extravagant and unconscionable expenditures, as well as promote prudence in the use of government resources by those involve in the intelligence/confidential operations”. In view of the above, itis the responsibility of the Head of the Agency who is also the Special Disbursing Officer to see to it the timely and proper management of intelligence and confidential funds. . Failure of the Municipal Government to submit Accomplishment Report on the utilization of the 2"! Semester ICF cash advance in the amount of P200,000.00 In our NS, we required the Municipal Government to submit to the Commission the Accomplishment Report on the utilization of the 2" Semester ICF cash advance for intelligence and confidential expenses, pursuant to Item II.3 of DILG Memorandum Circular No. 99-65 dated April 23, 1999. Said Accomplishment Report was previously mentioned in the AOM issued on October 4, 2017. Such failure of the LGU to submit the Accomplishment Report on the utilization of the intelligence and confidential fund, we cannot ascertain the activities where the ICF cash advance was utilized. Further, with regard to the accountability for the safekeeping of pertinent documents relative to the ICF cash advance and liquidations, the Head of the Agency, has the sole responsibility in the management of intelligence and confidential funds. Hence, we stand firm in our decision that the then Municipal Mayor should have maintained copies of the documents pertaining to intelligence and confidential funds.he person below has been determined to be liable for the disallowed transaction: ‘Nature of Participation in the Former Municipal * JOSE S. SANTOS Mayor/SDO ‘Name Position/Designation = | ‘* Authorized the disbursement of cash advance charged to ICF ‘© Responsible for the disbursements of the intelligence and confidential funds Failed to submit additional documentary requirements to substantially support the liquidations of ICF cash advance Please direct the aforementioned person liable to settle immediately the said disallowance. Audit disallowance not appealed within six (6) months from receipt thereof, shal] become final and executory, as prescribed under Section 48 and 51 of P.D. 1445. By Authority of the Chairperson: (Ce: The Audit Team Leader - LGU Orion, Bataan “Jemny/RRSIMGL Jue 8, 2021 / LIPANA rector III