The Commission on Audit (CoA) has called out Cabadbaran City in Agusan del Norte for granting its elected officials travel expenses for a double Japan trip, which auditors deemed “irregular.”

In its 2023 report, CoA found that elected officials of Cabadbaran local government unit (LGU) spent P67,509.54 on a Japan trip in August and November last year despite the absence of an appropriation for foreign travel.

The amount pertains to the transportation expenses and per diem of the said officials and was charged against the appropriation for the support to the office of the concerned elected officials. It was also recorded in the books of accounts as Training Expense and Travelling Expenses-Local, respectively.

Audit findings, however, revealed that there were no provisions for traveling expenses-foreign travel, which should have been the source of funds for the subject expenditure under the LGU’s Annual and Supplemental Budgets for 2023.

According to CoA, the grant of foreign travel claims notwithstanding the lack of budget for the same runs counter to the provisions set forth by the Government Auditing Code of the Philippines (Presidential Decree 1445), the Local Government Code (RA 7160), and Executive Order 77.

Under Section 336 of RA 7160, funds shall be available exclusively for the specific purpose for which they have been appropriated. No ordinance shall be passed authorizing any transfer of appropriations from one item to another.

“Thus, rendered the transaction irregular and disallowable in audit as provided under CoA Circular No. 2012-003,” the auditing body said.

The Cabadbaran LGU’s accountant attributed the irregularities to a lack of internal guidelines on the granting of travel claims of its officials and employees, which resulted in the improper charging and recording of the said transactions.