REPUBLIC OF THE PHILIPPINES

COMMISSION ON AUDIT
REGIONAL OFFICE NO. VIII
LGAS C – Leyte II and Biliran Province
New Ormoc City Hall
Ormoc City, Leyte

Team R8-03, Abuyog, Leyte

AUDIT OBSERVATION MEMORANDUM (AOM)

AOM No. 2023-001

Date: May 15, 2023

HON. OCTAVIO J. TRAYA, JR.

Municipal Mayor
Abuyog, Leyte

Attention: ERIK V. BARCELO

MDRRMO

We have audited the Local Disaster Risk Reduction Management Fund of the
Municipality of Abuyog and observed the following deficiencies/errors:

1. Only ₱4,989,810.00 or 21% of the 23,467,668.07 70% Mitigation and Special

Trust Fund (STF) Local Disaster Risk Reduction and Management (DRRM)
Fund was utilized out of the available appropriation, while eight (8) out of
fourteen (14) PPAs of LDRRM Fund totaling ₱14,200,000.00 remained
unimplemented, contrary to Section 2 of Presidential Decree (PD) No. 1445
and Section 12 of Republic Act (RA) No. 10121, thus, the objective of the
fund to support disaster risk reduction and management activities of the
Local Disaster Risk Reduction and Management Council (LDRRMC) may
not have been fully attained, which may limit the LGU’s capacity to mitigate
the impact of and respond to disasters.

1.1 Section 2 of PD No. 1445 States:

Section 2. Declaration of Policy. It is the declared policy of the State that

all resources of the government shall be managed, expended or utilized in
accordance with law and regulations and safeguard against loss or wastage
through illegal or improper disposition, with a view to ensuring efficiency,
economy and effectiveness in the operations of government. The
responsibility to take care that such policy is faithfully adhered to rests
directly with the chief or head of the government agency concerned.

AOM No. 2023-001 – Utilization of LDRRMF Municipality of Abuyog, Leyte Page 1 of 5

1.2 While Section 12 of RA No. 10121 provides that:

Section 12. Local Disaster Risk Reduction and Management Office

(LDRRMO) – (a) There shall be established an LDRRMO in every
province, city and municipality xxx which shall be responsible for setting
the direction, development, implementation and coordination of disaster
risk management programs within their territorial jurisdiction.

Xxx

© The provincial, city and municipal DRRMOs or BDRRMCs shall

perform the following functions with impartiality given the emerging
challenges brought by disasters of our times:

xxx

(6) Formulate and implement a comprehensive and integrated

LDRRMP in accordance with the national, regional and
provincial framework, and policies on disaster risk reduction in
close coordination with the local development councils (LDCs);

1.3 The Municipal Government of Abuyog appropriated ₱21,492,729.55 or 5% of its

estimated revenue from regular sources for disaster risk reduction and
management activities for CY 2022, in accordance with Section 21 of R.A. No.
10121. In addition, it has an unexpended balance from prior years’ Local DRRM
Fund in the Special Trust Fund (STF) totaling ₱8,422,757.38, bringing the total
available LDRRM Fund to ₱29,915,486.93 for CY 2022, as presented below:

Mitigation Fund
Particulars QRF (30%) TOTAL
(70%)
Current Appropriations ₱6,447,818.87 ₱15,044,910.6 ₱21,492,729.55
9
Unutilized Previous Years’
Balance
CY 2021 (STF) - 6,073,291.95 6,073,291.95
CY 2020 (STF) - 2,349,465.43 2,349,465.43
Total Funds Available ₱6,447,818.87 ₱ 23,467,668.07 ₱ 29,915,486.93

1.4 On the other hand, the LDRRM Investment Plan which was approved by the
MDRRM Council on December 13, 2021, included the specific disaster-related
Programs/Projects/Activities for implementation. Presented in Table 1 are the
Appropriation, Utilization and Balances of the Local DRRM Fund as of
December 31, 2022.
Table 1. DRRMF Utilization for CY 2022

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 Item
PPAs Appropriation Utilization Balance
No.
QRF (30%) 6,447,818.87 5,466,320.00 981,498.87
1 Conduct of DRRM Orientation, drills 1,444,910.68 119,000.00 1,325,910.68
and Simulations (World Tsunami
Awareness Day, DRRM Day,
Earthquake Drills, Tsunami Drill)
2 Training of Emergency Response 1,000,000.00 853,450.00 146,550.00
Personnel and/or Volunteer
3 Conduct of Barangay DRR Pulong- 500,000.00 48,750.00 451,250.00
pulong/Barangay Response Team
Training
4 Allocation for the Compensatory 700,000.00   700,000.00
Benefits to volunteer Mobilizing
Organizations and Accredited
Community Disaster Volunteers
Mitigation (70%)- MOOE 3,644,910.68 1,021,200.00 2,623,710.68
5 Construction of Emergency Evacuation 7,000,000.00   7,000,000.00
Road
6 Purchase of additional 1 unit 2,600,000.00   2,600,000.00
Emergency Support Vehicle
(Ambulance) for Emergency Rescue
Transport
7 Purchase of Personnel Protective 300,000.00   300,000.00
Equipment (PPE)
8 Purchase of Personnel Protective 500,000.00 171,160.00 328,840.00
Equipment (PPE) and or Life Saving
Equipment
9 Purchase of Cadaver Bag 500,000.00   500,000.00
10 Production and dissemination of IEC 500,000.00   500,000.00
Materials
Mitigation (70%)- CO 11,400,000.00 171,160.00 11,228,840.00
11 Construction of Emergency Evacuation 2,000,000.00   2,000,000.00
Road connecting Brgy. Can-uguib,
Buntay Street to Maharlika Highway
12 Construction of access road for the 2,000,000.00 1,612,750.00 387,250.00
temporary relocation site at Brgy. Pilar
at Brgy. Tinalian
13 Food and Non- Food Items Relief 3,822,757.38 2,184,700.00 1,638,057.38
Assistance for Stock Piling
14 Purchase of COVID-19 related 600,000.00   600,000.00
logistical/ medical supplies
Special Trust Fund (STF) 8,422,757.38 3,797,450.00 4,625,307.38
Subtotal QRF (30%) 6,447,818.87 5,466,320.00 981,498.87
Subtotal 70% Mitigation and STF 23,467,668.06 4,989,810.00 18,477,858.06
GRAND TOTAL 29,915,486.93 10,456,130.00 19,459,356.93

1.5 As can be seen in Table 1, the LGU only utilized the total amount of
₱4,989,810.00 or 21%, out of the total available LDRRMF appropriation for 70 %
Mitigation Fund and Special Trust Fund amounting to ₱23,467,668.06, hence, the
fund was not fully maximized.

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1.6 In addition, eight out of the fourteen PPAs under the Disaster Prevention and
Mitigation Program remain unimplemented as of December 31, 2022 with a total
allocation of ₱14,200,000.00 as follows:
Table 2. List of Unimplemented PPAs for MDRRMF for CY 2022.
PPAs Amount Remarks
2022 5% LDRRMF
Allocation for the 700,000.00 There was no incidence of
Compensatory Benefits to respondents hospitalized
volunteer Mobilizing for compensation during
Organizations and Accredited the year 2022.
Community Disaster Volunteers
Construction of Emergency 7,000,000.00 This fund was used as a
Evacuation Road back-up fund for the
construction of the
Emergency Evacuation
Road located at Brgy.
Tinalian for constituents of
Brgy. New Pilar due to
insufficient funds.
Purchase of additional 1 unit 2,600,000.00 This fund cannot be used
Emergency Support Vehicle because the Ambulance
(Ambulance) for Emergency was received from the
Rescue Transport DILG.
Purchase of Personnel 300,000.00 On bidding process.
Protective Equipment (PPE)
Purchase of Cadaver Bag 500,000.00 This fund cannot be used
because the cadaver bag
was received from the
Office of Civil Defense.
Production and dissemination of 500,000.00 On bidding process.
IEC Materials
Construction of Emergency 2,000,000.00 This fund was used as a
Evacuation Road connecting back-up fund for the
Brgy. Can-uguib, Buntay Street construction of said project
to Maharlika Highway due to insufficient funds.
Purchase of COVID-19 related 600,000.00 It was used as a back funds
logistical/ medical supplies to RHU for COVID-19
logistical needs
GRAND TOTAL ₱14,200,000.0
0

1.7 The lack of careful and organized planning in executing and implementing the
PPAs could be identified as the reason behind the unimplemented PPAs
mentioned above. Upon reviewing the CY 2022 LDRRMF Investment Plan
(LDRRMFIP), it was revealed that there was no clear schedule for the

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 implementation of the PPAs. The "Schedule of Implementation" section in the
LDRRMFIP only provided a broad timeframe of "January to December and June
to December," without specifying the exact periods for implementing all the PPAs
under the Local DRRM Fund.

1.8 Also, the delayed or non-implementation of the planned LDRRM activities per
LDRRMFIP could have an effect on the capability of the Municipality to prepare,
manage and respond to disasters as well as its ability to assist the constituents in
times of calamity.

1.9 We recommend that the Municipal Mayor, as Chairman of the MDRRM

Council, and the MDRRM Officer:

a.) maximize the utilization of the LDRRMF in order to effectively

increase the level of preparedness of the municipality during natural
calamities.

b.) Provide specific timelines and implement the PPAs under the
LDRRMFIP within the said timelines.

May we have your comments on the foregoing audit observation within five (5)
calendar days from receipt hereof.

MA. SHIELA T. ELMIDO

State Auditor II
OIC- Audit Team Leader

SANTIAGO P. SEÑASE
State Auditor IV
OIC-Supervising Auditor

Proof of Receipt of AOM:

Officer Name of Receiving Officer Signature Date Received
Municipal Mayor
MDRRM Officer

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