CoA: Agri credit body’s POs lacked documentation

The Commission on Audit (CoA) has flagged the Agricultural Credit Policy Council (ACPC) over P23 million in procurement orders that had incomplete supporting documents.

The 2023 CoA report showed that the ACPC submitted 139 procurement orders (POs), with 32 of them worth P4,716,430.44 missing documentation. The remaining 107 POs in the amount of P19,095,965.69 were submitted without supporting documents.

“The supporting documents were only attached to the disbursement vouchers when processed, instead of forwarding the contract and its integral parts to the auditor for review within five days from perfection of the contracts, thus, validation/review of the same were not undertaken due to incomplete and/or absence of supporting documents,” the auditing body said.

Audit findings further revealed that the ACPC was not compliant with the Government Procurement Reform Act (Republic Act 9184) for procuring various materials, goods, and services, lease of venues, which comprised the 25 POs amounting to P7,213,580 without showing proof.

State auditors were told by a concerned ACPC official that the incomplete documentation and non-submission of supporting documents stemmed from the divided responsibilities among various divisions and individual end-users responsible for reporting to CoA.

The official explained that while the Procurement Division was aware of the requirements, only POs with supporting documents for procurements exceeding P50,000 were consistently submitted.

Those tasked with procurements below P50,000, including venue leases, were not fully briefed on the submission of documentary requirements, leading to an oversight in compliance with the relevant provisions.

The audit team emphasized that the Bids and Awards Committee (BAC) bore responsibility for the procurement process of the agency, ensuring compliance with the standards outlined in the Act and the Implementing Rules and Regulations (IRR), and in the preparation of a Procurement Monitoring Report as mandated by the Government Procurement Policy Board.

Additionally, end users have the opportunity to serve as provisional members of the BAC, as stipulated in Section 11.2.2.c of the IRR of RA 9184.

“The incomplete and non-submission of required documents delayed the evaluation of contracts in compliance with the provisions of RA 9184 and its IRR, particularly on the completeness of documentary requirements, and the assessment of contractual covenants to ensure these are not disadvantageous to the government,” the CoA said.

Auditors warned that the ACPC’s BAC and the officers concerned must submit the copies of contracts and purchase orders, along with their complete supporting documents, to the audit team on time.