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COA flags OVP's use of P25 million research budget for COVID-19 initiatives


The Commission on Audit (COA) flagged the Office of the Vice President for using P25 million of its research fund for COVID-19 initiatives, saying government funds should be used for their intended purpose.

In its annual audit report on the Office, state auditors noted that the OVP's P25 million Survey, Research, Exploration and Development (SRED) budget, introduced by Congress, was intended for assessing the impact of the OVP's flagship anti-poverty program Angat Buhay in communities.

"Further inquiry from budget officer and policy unit head revealed that the purpose of the SRED Expenses appropriation is to measure and assess the impact and success of OVP’s Angat Buhay program in addressing the poverty in communities it helped. However, per review of transactions, it was disclosed that the SRED budget was realigned and utilized for OVP’s regular social services, COVID-19 projects and other purposes," COA said.

The COVID-19 initiatives included: Vaccine Express, communication allowance granted to Public Assistance Division staff to interview and communicate with medical and burial assistance clients, other OVP staff work related to communication with partners and communities, budget for Consultancy Services of Bayanihan E-Konsulta Core Doctors, Mental Health Support Lead, Consultant for automation of online platforms, and other consultancy services used for operations, among others.

"Though we understand Management’s decision to instead utilize the budget for OVP’s social services and COVID-19 projects, management (OVP) shall see to it that government funds were utilized as intended, especially congress-introduced budget which has specific purpose/project. Considering that the intended project of SRED budget was not implemented due to OVP’s failure to obtain suitable project proposal, OVP should have offered said budget for discontinuance to fund other priority programs of the government," the COA added.

The Commission then recommended that the OVP exercise prudence in managing government funds to ensure that the agency’s budget was utilized for the authorized purpose.

In response, the OVP said that the SRED Expenses budget was not utilized for its original purpose because the OVP was unable to obtain a viable proposal from potential service providers that matches the requirements for the survey and research activities envisioned for the project.

The allotment, the OVP said, was modified to allow the office to utilize the fund to augment its operational requirements for COVID-19 initiatives based on applicable rules as provided under the 2021 National Budget law.

"While the budget may not have been utilized for its original intended purpose, its actual utilization has achieved a substantial and far more reaching benefit during the pandemic. Modification in the allotment within the same activity or project, particularly the change in the object of expenditure from SRED to other various expense items under the MOOE (Maintenance and Other Operating Expenses) within the same program/project/activity is expressly authorized under Section 72 of the General Provisions of the 2021 General Appropriations Act," the OVP said about COA's findings.

"With due respect, we submit that the utilization of the budget for a different purpose under exceptional circumstances as authorized under the law is more reasonable and judicious than staying rigid if only to pursue an initiative that has become unviable and potentially disadvantageous to the government, such as in this case," the OVP added.

COA, however, maintained that the P25 million fund was better left unused.

"As we are in no position to assess whether this decision is the most advantageous to the government, we would like to point out that though the budget item was included in the Good Governance Program, it is budgeted and intended for a specific output, which is to measure and assess the impact and success of OVP’s Angat Buhay," COA said.

"Though it benefited other individuals, it deprived other beneficiaries of information on the impact and success of OVP’s Angat Buhay, which information can be vital in helping communities in need (i.e. can be used by the government or other private entities as a reference on how they can efficiently assist and help communities in the far-flung areas, can be used on how they can improve the social services provided to indigent and underprivileged communities, etc.). OVP could have offered said budget for discontinuance to fund other priority programs of the government," COA added. — DVM, GMA News