The Commission on Audit (CoA) has called the attention of the Office for Alternative Dispute Resolution (OADR), an attached agency of the Department of Justice, on the non-utilization of its funds totaling nearly P12 million.

The OADR had a total allocation of P119,018,777.78 last year based on the 2023 audit report.

State auditors, however, discovered that the OADR did not fully use the funds, leaving a balance of P11,989,693.64 or 10.07 percent of the total budget.

The amount covers the current year and the continuing appropriations of the OADR amounting to P9,679,194.73 and P2,310,498.91, respectively.

Audit findings further revealed that the OADR has P8,079,771.29 in unused funds under notices of cash allocation (NCA).

The amount, which was part of the P103,455,399.30 the OADR received as NCA, had lapsed due to a lack of additional or supplemental programs.

The CoA lamented that the overall unutilized funds deprive the supposed end-users of the benefits that may be derived from the agency’s additional projects.

“Although it is noted that the accomplishments of the OADR have exceeded its physical targets for the budget year 2023, the office should have implemented additional and supplemental programs, projects and activities to maximize the utilization of allotments and the NCAs,” the auditing body said.

While the OADR admitted that it fell short of fully utilizing its budget, it emphasized the importance of maximizing received allotments and ensuring the prudent use of resources to deliver public services effectively.

It said the agency’s foreign travel expenses had been effectively and efficiently utilized, resulting in minimal costs in 2023.

Planned foreign engagements were also completed, and some international trainings were attended online generating savings due to optimization.

The OADR said payment processing delays, resulting from the inability to meet required documentary requirements, led to an unutilized NCA totaling P8,079,771.29.