Davao farmer vet urges Dabawenyos to start small business with dairy goats
July 24, 2010
DAVAO CITY– Dabawenyos who are looking for livelihood and lifestyle Read more
Another village leader shot dead in Davao City
July 22, 2010
Another village leader was killed by New People’s Army (NPA) death squad Read more
Troops dead in bomb explosions
July 22, 2010
Two government troops were killed and two others were wounded in three Read more
Davao watershed council taps barangay women to protect environment
July 22, 2010
The nurturing nature of women inspired the Watershed Management Read more
Mindanao hub is budget airline’s next project
July 22, 2010
Budget airlines are bent to add domestic flights to promote Read more
Davao City 2007 COA Value for Money Audit
July 4, 2010
II. VALUE FOR MONEY AUDIT
1. Leniency in the implementation of waste segregation at source and at collection points, the excessive deployment of some garbage bins in some collection points, the use of garbage bins which weight is beyond the capacity of human strength, and the breakdowns of compactors, all attributed to the attainment of only sixty six percent (66%) collection rate of solid waste far below the target efficiency of eighty to ninety percent if not 100% as envisioned for a clean and healthy environment.
Among the declared policy provided in Section 2 of RA 9003 otherwise known as the “Ecological Solid Waste Management of 2000” is to ensure the proper segregation, collection, transport, storage, treatment and disposal of solid waste through the formulation and adoption of the best environmental practice in ecological waste management excluding incineration. Section 10 of this Act further provides that implementation and enforcement shall be the primary responsibility of the Local Government Unit which is likewise in pursuant to the provisions of RA 7160 or the Local Government Code. That segregation and collection of solid waste shall be conducted at the barangay level specifically for biodegradable, compostable and re-usable waste; Provided, That collections of non-recyclable materials and special waste shall be the responsibility of the city.
With the population of more than a million, based on study the city could generate waste about 1,200 to 1,500 cubic meters a day or 540,000 cubic meters per year. This solid waste were categorized as follows vis-à-vis respective rates:
Waste component Percentage Biodegradable 62.3% Recyclables 16.3% Special Waste 1.1% Residual 20.3% Total 100%
Section 16 of the same Act so provides that the city through its local solid waste management board shall prepare its respective 10-year solid waste management plans consistent with the national solid waste management framework. While the City through the Solid Waste Management Board go through with the formulation of the said 10-year plan which came out in 2007 starting the 10 year count from 2008 to 2017, on May 29, 2006, it has designed Garbage Collection Modernization Program primarily for the economical, efficient and effective collection and disposal of solid waste to the end of ensuring a healthy and clean environment.
The city collected garbage from 60 barangays and portions of 33 barangays out of the total 182 barangays as to date. Barely 54% considering that the remaining eighty three (83) and portion of the 33 barangays are situated in the rural side of the city and which waste are still manageable using the traditional way within their milieu without so much harmful effects in their environment. Pursuant therefore to the mandate of R.A 9003, necessary facilities were required to collect eighty to ninety percent (80%-90%) if not 100% of the waste categorized as Biodegradable and Residual. Records of the City Environment and Natural Resources (CENRO) showed that for the past ten (10) years from 1997 to 2006, the average waste collected was 339,449 cubic meters or approximately 942 cu. m. per day. These waste were transported to their final disposition site, by making use of the hauling facilities of the city and engaging services of a private trucking company considering that condition of the existing city owned dump trucks cannot anymore cater the required need. Hauling facilities of the city except for a few has reached to the point beyond repair and are now subject to disposal. The CENRO has already returned some of these unserviceable vehicles and retained some despite their poor conditions.
In addition to the hauling needs, standardized receptacles or bins for temporary storage of waste compliant with the requirements of the Act is necessary to replace the old ones provided by the city as well as that of the barangays. These old ones, which are made of fabricated tires, concreted boxes and some out of wooden baskets did not meet the requirements that temporary storage shall be in their proper container and covered.
To supplement therefore the financial requirements of this Garbage Collection Modernization Program, the city availed series of loan from the land bank of the Philippines since 2005 until 2007 to finance the rehabilitation and construction of the solid waste land fill and the acquisition of equipments and other facilities.
And so with this financing, along with the other projects, the City has accumulated, thirty thousand one hundred thirty six garbage bins. Disposition and condition per category are as follows:
Category Distributed On Stock Damaged Total GRAND Per capacity Green Gray Green Gray Green Gray Green Gray TOTAL 660 ltrs. 93 54 654 459 13 0 760 513 1273 360 ltrs. 128 147 1216 749 15 5 1359 901 2260 240 ltrs. Old 2383 4455 33 29 124 111 2540 4595 7135 240 ltrs. New 1999 3821 29 235 0 0 2028 4056 6084 120 ltrs. 5967 7150 195 38 24 10 6186 7198 13384 TOTAL 10570 15627 2127 1510 176 126 12873 17263 30136
Please refer for Annex Q for the Inventory Report.
Presumably, with the above supplies it is expected that the mandate provided in Section 21 and 22 of RA 9003, that segregation of solid waste can be done not only at source but at collection points where storage bins are labeled properly as compostable, non-recyclable, recyclable and special waste, will be attained.
Series of information drives and campaigns were made for proper dissemination of this segregation program, however, for the past years based on actual observation and interviews, while some segregation was done at source, segregation at collection points was barely practiced or none at all. The color coding of the garbage bins, that is gray for non bio-degradable and green for bio-degradable was of no effect. Anything and everything were dump in whatever color they wish regardless of the type of garbage. In some, or not in many instances, dumping were done in the ground beside the provided receptacles where dogs take flight of spreading the same. The segregation of dumped waste in the garbage bins in most instances, were only done by those who are engaged in buying and selling recyclables. Collectors then became regular suppliers of recyclable wastes.
As stated above, segregation and collection shall be conducted in the barangay, thus, distribution of garbage bins was coursed through the barangay government. Segregation and collections shall then be conducted for biodegradable, compostable and reusable waste. The barangays were tasked to identify collection points and accordingly deployed the garbage bins where collectors with the use of compactors and dump trucks gather the same for final disposition to the designated dumping site. In most of the served barangays, garbage bins were strategically set along the main roads for accessibility of collectors. There was however a barangay who tried to maintain only one collection point for easy monitoring and taking into account the complain of the constituents residing along the collection points who were suffering horrible smell out of the waste stored.
This barangay was issued three hundred eighty six (386) garbage bins. Collection of waste from the household was done by a collector accredited by the barangay who is engaged in recycling business. This collector went from house to house and gather the waste for storage in the collection point. Along with the collection activity, segregation was done for recyclable. In this particular barangay, it was observed that collections by the compactors and or dump truck were conducted thrice a week. Considering that only one (1) truck was assigned on scheduled day, only half of stored waste is collected. The remaining wastes were collected on the next schedule. Temporary storage therefore in the provided garbage bins in this barangay last for a number of days specially those stored in larger bins where lifting manually up to the dump trucks were beyond the capacity of the collectors.
In other barangay subjected to interview, it was also learned that whenever complaints were received of stink from the garbage within their area for the reason that wastes were not collected regularly and even if collected spillage of extracts from the waste remained, the barangay immediately caused the transfer of such bins to some other area.
For collections of waste from the generators to the storage, and finally to the final dumping site, provisions of Section 23 of the same Act so provides the following:
(a) All collectors and other personnel directly dealing with collections of solid waste shall be equipped with personal protective components to protect them from the hazards of waste;
(b) Necessary training shall be given to the collectors and personnel to ensure that the solid waste are handled properly and in accordance with the guidelines pursuant to this Act; and
(c) Collection of solid waste shall be done in a manner which prevents damage to the container and spillage or scattering of solid waste within the collection vicinity.
Schedule for the Collection to transport wastes to final disposal site were supposed to be in a given days of the week. That for biodegradable, Mondays, Tuesdays and Wednesdays and for Residuals, Tuesdays, Thursdays and Saturdays.
It was observed however that collection of anything and everything is done at any given day of the week loaded in the same truck. Recyclables segregated were among those loaded in the trucks and ready for delivery to buyers. This buyer include the owner of the temporary landfill engaged in such business.
It was observed further that Collectors were unmindful of the provisions in the use of personal protective components. While they were supplied with mask, hand gloves, boots and raincoats, accordingly, the collectors feel uncomfortable using them. They even considered these protective components a hindrance to their efficiency.
On the other hand, according to some barangay constituents, some collectors failed to handle the garbage bins properly, that is, throwing the bins unceremoniously from the top of the truck to the ground thus contributing damages to a reported number of three hundred two (302). Please refer to Annex Q.
For transporting solid waste to the final disposal site, the facilities of the City cannot anymore meet its hauling needs considering the deteriorated conditions of dump trucks purchased ten (10) or more years ago thus, for a couple of years since 2004, the city has engaged hauling services from private company. This hauling trucks were open. So to comply therefore with the mandate of the law, this open dump trucks were covered with canvas/tarpaulin.
Of the estimated 1,500 cubic meters waste or 540,000 cu. ms. a year, only an average of approximately 350,078 cu. ms. was collected equivalent to only around sixty six percent (66%).
Along therefore with the acquisition of garbage bins, the city also procured ten (10) compactors for waste collections and hauling to the final dump site. The purchase should supposedly increase waste collection rates, reduce the costs of hauling services the city is paying to a private company, and significantly, make solid waste collection more efficient.
The ten (10) compactors were mobilized only on May 29, 2006. Between August 2006 and August 2007, the compactors collectively make an average of 20 trips per day and the rented dump trucks make an average of 48 trips per day while CENRO dump trucks made four trips a day for “spot” collection debris out of pruned trees. The CENRO dump trucks were not anymore used in collecting other waste because of their dilapidated conditions. Altogether, this comes to a total of 73 trips per day for all collection vehicles. With the acquisition of compactors, initially, the number of trips of rented haulers reduced. The reduction from year 2006 to 2007 is about thirty percent (30%) or 17,296 trips in 2007 against 24,851 trips in 2006, a decrease by 7,555 trips. In terms of financial values the hauling services was reduced from P110,632,650.00 in 2006 to P87,990,468.00 in 2007 or a reduction of P22,642,182.00 or twenty one percent (21%).
However, after barely a year operation, three (3) compactors already suffered breakdowns, accordingly due to the rugged terrain to the temporary dumpsite in Lacson coupled with loading beyond capacity. As of to date, out of the ten, only seven are operational. The breakdown occurred on the last quarter of 2007. Repairs were not done immediately because the necessary spare parts were not readily available in the local market. With this, the hauling services of the trucking company is requested to automatically fill in the gap so as not to worsen the collection efficiency.
On the other hand, verification was likewise made on the recording of transactions relative to Solid Waste Management Program.
Provisions of Section 2.2 of COA Circular 2005-002 dated April 14, 2005 on the accounting policy on items with serviceable life of more than one year but small enough to be considered as Property, Pland and Equipment states –
“ 2.2 .1 Small tangible items with estimated useful life of more than one year, shall be recorded as inventories upon acquisition and expense upon issuance.”
Garbage bins may fall under category of the common sanitary supplies where transfer of accountability is passed to the barangay for management, deployment utilization and monitoring.
In verifying the recording of the of garbage bins, it was observed that portion of these assets were accounted under the Other Machineries and Equipment (Account Code 240) account as follows:
Other Machineries and Equipment Property Acq. Est. Acquisition Acc. Net Book Number Description Date Life Cost Depreciation Value 240-052-0001 6900 units 240L Garbage Bins Aug 24, 2005 10 129,527,950.00 36,253,975.19 93,273,974.81 13350 units 120L Gabage Bins
And the rest costing P93,891,425.40 per general ledger with corresponding journal voucher enumerated below were accounted as Other Property, Plant and Equipment ( Account Code250).
Particulars Reference Debit Payment for the opening of LC for the importation of garbage bins JEV-2007-04-021723 Ck#2009778 33,705,806.40 Cash payment for importation of mobile garbage bins JEV-2007-04-022549 Ck#2009113 33,632,656.20 Cash Purchase of Property, Plant and Equipment (GARBAGE BINS) JEV-2007-06-033931 Ck#2014857 26,552,962.80 TOTAL 93,891,425.40
Schedule of Property, Plant and Equipment for Account 250 showed that these assets were computed depreciation as follows:
Other Property, Plant and Equipment Property Acq. Est. Acquisition Acc. Net Book Number Date Life Cost Depreciation Value 250-0100 Apr 30, 2007 10 33,705,806.40 2,022,348.40 31,683,458.00 250-001-0001-0001-02-0021 Apr 20, 2007 10 33,632,656.20 2,017,959.36 31,614,696.84 250-004-0002-0001-03-211 Jun 19, 2007 5 26,552,962.80 2,389,766.64 24,163,196.16 TOTAL 93,891,425.40 6,430,074.40 87,461,351.00
Recommendation for Davao City Government:
a. Conduct information, education and campaign drives on proper segregation of waste on a continuous basis.
b. Deployment of garbage bins shall be reviewed and its inventory and monitoring shall likewise be continually conducted;
c. Consider some mechanical device or provide lifting machine for garbage bins which are beyond the capacity of collectors to lift. Loading would surely have a smoother progress and collection would be maximized;
d. Require trainings in the use of personal protective components as a prerequisite in the deployment of collectors. Impose sanction for those who will not use the same.
e. Review the time motion for Collection and Transport of existing volume of garbage temporarily stored in the provided receptacles in order to determine further if available compactors and rented dump trucks, are sufficient to attain 100% waste collection in its prescribed period of temporary storage; and
f. Prepare necessary adjustment for the proper classification of the accounts for garbage bins.
g. Adoption on the provisions in Section 49, imposing Fines and penalties for prohibited acts enumerated in Section 48 shall be meaningfully adopted by the city if only to manifest the intent of the law for a healthy and clean environment. Please refer to Annex R for the enumerated provision of Section 48 and 49 of R.A. 9003.
Davao City 2007 COA Audit 8
July 4, 2010
8. Non-consolidation of all personnel records and/or files in one central department caused Management’s inability to produce at once a database system of personnel in general for the city. Likewise, linking the existing payroll system with that of the present Human resource information system fast track processing of payroll and convert into an automated one is difficult to achieve.
Provisions of Section 77 of RA 7160 specifically states that the chief executive of every local government unit shall be responsible for human resources and development in his unit and shall take all personnel action in accordance with the constitutional provisions on civil service, pertinent laws, rules and regulations thereon, including such policies, guidelines and standards as the Civil Service Commission may establish.
On the other hand, Section 454 of the same RA 7160 states that the Sangguniang Panlungsod may create such other offices as may be necessary to carry out the purposes of the city government and/or consolidate the functions of any office with those of another in the interest of efficiency and economy.
Database system, on the other hand, is a computerized record keeping system whose overall purpose is to maintain information and to make that information available on demand.
The existing practices of the city when it comes to personnel matters are as follows:
1. The Legislative Department created a Human Resource Management Section that is responsible for all personnel appointed by the City Vice Mayor. Payroll is being prepared by the Payroll Clerk using the in-house payroll system developed by the CITC and being enhanced by the Systems Administrator of the City Accountant’s Office.
The functions of the Human Resource Management Section are the following:
> Preparation and submission of appointments, payrolls, vouchers, monthly reports of attendance, service records, memoranda, certification, notice of salary adjustments, notice of step increment,
> loyalty, performance ratings, assets and liabilities, personnel monitoring, tax record update, leave applications and other documents;
> Indexes/updates individual records of personnel re: salaries/wages and other payroll deductions, service records and leave credits; and
> Files records.
2. The Executive Department, on the other hand, has created the Human Resource Management Office that is responsible in the implementation of a sound recruitment, selection, placement and promotion system; update and maintain database of personnel, train, develop and provide human resource development interventions to employees; administer pay and salary scheme as well as employees benefits; monitor and evaluate employee performance, childminding/day care cervices, solicits job vacancies from various establishments for employment facilitation, conducts job fairs (local and overseas), and counseling for applicants.
It was observed that the functions of the Human Resource Management Section of the Office of the Sangguniang Panlungsod duplicate the function of the Human Resource Management Office. While it is true that the City Vice-Mayor is the one who appoints all officials and employees of the Sangguniang Panlungsod, the Human Resource Management Office as the central personnel department, should also maintain record of the personnel of the Legislative Department or the Sangguniang Panlungsod and not just the personnel record of the Executive Department or the City Mayor’s Office.
A centralized database aimed at maintaining a complete and up-to-date personnel records of the City Government of Davao in general.
Further, the functions of the Human Resource Management Section of the Sanguniang Panlungsod focuses only on the preparation and submission of appointments, payrolls, vouchers, monthly reports of attendance, service records, memoranda, certification, notice of salary adjustments, notice of step increment, loyalty, performance ratings, assets and liabilities, personnel monitoring, tax record update, leave applications and other documents, indexes/updates individual records of personnel relative to salaries/wages and other payroll deductions, service records and leave credits; and files records. Sustaining an effective organization with qualified, competent and committed personnel that will provide excellent and effective public service through the conduct of in-house training programs, facilitating pre-qualifying examinations and other
programs for personnel development are not part of the function of the Human Resource Management Section of the Office of the Sangguniang Panlungsod.
Preparation of the payroll, on the other hand, is decentralized. It is done by each of the department concerned through a developed in-house payroll system. Substantive tests were made in the existing system and below are the results of the tests:
1. Only valid data are processed by the computer;
2. Data is authorized at the time a document is prepared;
3. Rejections occurs if data is incomplete; and
4. Validation procedure is subject to appropriate approval procedures.
Further evaluation revealed that any error/s committed by the Payroll Clerk from the department is being checked by the Internal Control Division of the City Accountant’s Office before it shall be finally processed in the computer by the payroll in-charge. This is another compensating control being installed by the City Accountant in order to further check the accuracy, completeness and validity of the system-generated inputs. Procedures were established to assure that input data is validated and edited as close to the point of origin.
Moreover, the present payroll system has no linkage with that of the Human Resource Management Office. Since each of the department is the one preparing their payroll, the Accounting Office only reviews and process the data through an in-house computerized payroll system. It is assumed that data are correct, unless proven to be incorrect during the review by the Internal Control Audit Division of the City Accountant’s Office. Other benefits, like monetization of leave credits, the City Accountant’s Office rely on the certification of leave credits issued by the HRMO of the Legislative Department as well as the Executive Department.
In an exit conference, management commented that the city is now on the process of developing an improved in house Human Resource Management Information system that will address personnel Information problems.
Recommendation for Davao City Government:
1. In order to protect the city from public scrutiny and issues like “maintenance of ghost employees”, develop and maintain a Human Resource Management Information System that will contain different modules, such as; Plantilla Management Information, Non-Plantilla Management Information, Personnel Selection, and the like. Any personnel information, once authorized, should be available on demand.
2. The system, once developed, should have a linkage with City Accountant’s Office to eradicate, if not, minimize manual reviews.
3. In developing the in-house database system, detection controls over data file updates have to be embedded so as data can be reliable.
Davao City 2007 COA Audit 7
July 4, 2010
7. Disbursement amounting to P621,440.00 for expenses in 2006 charged under Special Education Fund is not in compliance with the implementing guidelines of PD 1969 and Letter of Instruction 1462.
Among the salient features in the utilization of Special Education Fund (SEF) provided by Local Budget Circular No. 23 paragraph 4.0 made as an Implementing Guidelines of PD 1969 and LOI 1462 governing the utilization of the SEF accruing to the local government units or the School Board Fund created under Republic Act 5447, as amended, state:
Except as may be authorized by law, the following shall not be funded out of the School Board Fund:
a. basic salary to persons other than elementary school teachers, head teachers and elementary school principals
b. Construction and/or repair of buildings other than school buildings
c. Purchase of motor vehicle
d. Payment of maintenance and operating expenditures of agencies and office other than the Local School Board itself. – Maintenance and other operating expenses that may be allowed for the school board itself shall include only the following: (1) Supplies and Maintenance, (2) Traveling Expenses, (reimbursable) for allowed conferences/meetings of school board.
e. Purchase of forms other than those used in the school system, and
f. Sponsorship of fairs, contests, exhibits, and other related activities
Purchase of various appliances made in 2006 which were given to employees of the City as part of the Mayor’s Pahalipay ni Mayor project and disbursed in January of 2007 where paid out of the Special Education Fund which may either fall in item d or f in the above enumerations. It was also noted that the said purchase exceeded the number of intended recipients who were to received the same for an equivalent amount of P38,895.00 as shown below:
Description Per Voucher Distribution Per Audit Difference Qty Amount Qty Amount Qty Amount Refrigerator – sharp 4 44,800.00 4 44,800.00 0 – Colored TV – sharp 4 36,800.00 4 36,800.00 0 – Washing Machine – sharp 4 13,340.00 4 13,340.00 0 – Flat Iron – standard 100 45,000.00 95 42,750.00 5 2,250.00 Rice Cooker – standard 100 97,500.00 100 97,500.00 0 – Electric Airpot standard 100 135,000.00 94 126,900.00 6 8,100.00 Stand Fan – standard 100 135,000.00 93 125,550.00 7 9,450.00 Oven Toaster 100 75,000.00 80 60,000.00 20 15,000.00 Wall Clock 200 39,000.00 179 34,905.00 21 4,095.00 Total 712 621,440.00 653 582,545.00 59 38,895.00
R
A 7160 of Sec. 272. – Application of Proceeds of the Additional one Percent SEF Tax, further provide:
Xxx, That the proceeds shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the local school board.
Priority needs, improvement and better service for both primary and secondary education of public schools is given importance of the above law, thus must be complied with.
These purchases would have been allowed if they were charged under the General Fund. However as shown in Annex P, end users or recipients of these appliances where employees of the City Government of Davao who are not local and national public school teachers to be entitled of the proceeds of the SEF, particularly on fringe benefits. Section 2 of P.D. No. 1969, also amending Section 87 of P.D. 464, provides that the proceeds of the Special Education Fund accruing to the local School Board shall be used for the salary adjustment, allowances and other fringe benefits of local and national public school teachers.
Management, thru the City Accountant said that they will look into the vouchers under the General Fund because there might be charges or expenses made for the teachers that were paid out of the General Fund. As to the difference of P38,895.00, she further said that the Human Resource Management Office (HRMO) will review the distribution list and account for the said difference.
Recommendation for Davao City Government:
1. To set the corresponding Receivable or Due from Accounts under the books of the Special Education Fund with its corresponding Payable or Due To accounts under the General Fund.
2. Payment or transfer of fund amounting to P621,440.00 from the General Fund to the Special Education Fund to be effected in 2008 the soonest possible time for it to be used or augment any priority projects under the SEF as mandated by rules and regulations.
3. To account the difference of P38,895.00
Davao City 2007 COA Audit 6
July 4, 2010
6. The Sangguniang Panlungsod participated in the execution of health services activities inherent to the executive department resulting to the inadequate control in the purchase and distribution of drugs & medicines, medical, dental & laboratory supplies and equipment in the amount of P1,695,821.20.
Republic Act No. 7160, or the Local Government Code of the Philippines, provides that the powers, duties and functions of the Sangguniang Panlungsod (SP), as the legislative body of the city shall enact ordinances, approve resolutions and appropriate funds for the general welfare of the city and its inhabitants (Sec. 458(a).
Provisions of Section 455 of the same code also provides that the City Mayor as the Chief Executive of the city government shall exercise general supervision and control over all programs, projects, services, and activities of the city government.
One of the objectives of the City Health Department as part of the Executive Department is to effectively and efficiently deliver comprehensive health care services to the city constituents in conformity with the provisions of Sections 16 and 17 (b)(2) of RA 7160, otherwise known as the Local Government Code.
Health, Education and Social Services is the Number 2 priority of the city government in the allocation of its available resources in order to promote, protect, preserve and restore the health of the people through the delivery of basic health care services at all levels with a total general fund appropriation for its various programs and/or projects amounting to P150,985,156.00.
On the other hand, through the Annual Development Fund, the Sangguniang Panlungsod as the Legislative Body, approved the amount of P3,250,000.00 for the Comprehensive Medical & Dental Assistance Program for the different districts of Davao City to be implemented by the City Health Office as the Lead Agency and their office as the Coordinating Agency.
Audit of transactions pertaining to the payment of drugs & medicines, medical, dental & laboratory supplies and equipment disclosed that the city government procured the same through public bidding and negotiated contract.
Procurement of drugs & medicines, medical, dental & laboratory supplies and equipment chargeable against the general fund follow a system of procurement and distribution being controlled by the Supply Section of the City Health Office. All drugs and medicines purchased by the City Health Office were in accordance with the Philippine National Drug Formulary (PNDF).
After acceptance of deliveries of the various drugs and medicines, the Supply Section of the City Health Office has to allocate and distribute the same to the sixteen (16) district health centers, two (2) district hospitals, and seven (7) special services (dispensary, laboratory, dental, etc.). The Pharmacists, Nurses, Midwives, PHNs, and District Health Officers, on the other hand, after receipt of the above items from CHO Supply Section, ensure the proper storage and distribution of said drugs and medicines.
In actual practice, however, immediate allocation and distribution could not be made because of limited supply of drugs and medicines, and due to the required 30% maintaining balance out of the existing stocks as reserves for contingency.
Review of the paid vouchers and supporting documents revealed that majority of the drugs & medicines, medical, dental & laboratory supplies and equipment for distribution to the intended beneficiaries in the total amount Of P1,695,821.20 (Annex O) procured chargeable against the Annual Development Fund have no supporting distribution lists, proof that actual implementation of the health program activity was conducted and/or implemented.
Interview with responsible persons revealed that drugs & medicines, medical, dental & laboratory supplies and equipment chargeable against the general fund follow the existing system of procurement while drugs & medicines, medical, dental & laboratory supplies and equipment chargeable against the Annual Development Fund do not follow the existing system. Documents were prepared and processed by the Office of the City Councilors while the Supply Section of the City Health Office only accepts the delivery of the said drugs & medicines, medical, dental & laboratory supplies and equipment for storage and preservation. There is no means of determining whether drugs and medicines being requisitioned were in accordance with the PNDF.
After delivery and acceptance were made, a letter-request from the Office of the City Councilor, as the Coordinating Agency is made requesting for the withdrawal of all the drugs and medicines being delivered and accepted by the City Health Office, as the Lead Agency. The Office of the City Councilor, however, is being reminded for the submission of the required distribution lists after outreach activity is being done.
Some of the offices of the City Councilors were able to comply with the requirement but partially completed. Others have not really complied. These problems could have been addressed if the Office of the City Councilors acted only as the coordinating agency and not the lead agency/implementing agency.
The Project Design (Non-Infra) for the various projects sourced from the Annual Development Fund under Comprehensive Medical and Dental Assistance Program specifically cited the following:
Area of Coverage is identified;
1. Beneficiaries are clearly indicated; ( barangays specified)
2. Lead Agency is the City Health Office;
3. Coordinating Agency is the Office of the City Councilor;
4. Project Management Structure is defined (City Health Office as the Lead Agency, City Councilor as the Coordinated Agency, District Health office and Barangay Health Office as the implementing agencies); and
5. Beneficiaries are identified as the expected output.
Had the above process/procedures followed by the two departments, the legislative department and the executive department, the problem in the difficulty of monitoring the adequacy/inadequacy of drugs and medicines purchased as well as in the distribution could have been eradicated and/or minimized.
In an exit conference, the management assured that in order to address the problem, the Local Finance committee will formulate and/or issue guidelines in the execution and utilization of all the non-infra projects funded under the Annual Development Fund.
Recommendation for Davao City Government:
The Office of the City Councilors is advised that as legislators, they are to refrain from engaging in activities inherent to the executive department to avoid overlapping or duplication of work and/or functions which usually result to difficulty in monitoring the issuance and/or distribution of the various drugs and medicines.
In order to determine the right drugs and medicines for the intended beneficiaries, all purchase requests should pass the City Health Office for verification whether or not drugs and medicines subject to be procured falls within the list supplied by PNDF.
Immediate submission of the distribution lists by the Office of the City Councilors for all projects implemented and/or funded under the Comprehensive Medical and Dental Assistance Program.
Davao City 2007 COA Audit 5
July 4, 2010
5. The city was deprived of additional income in an aggregate amount of P8,498,390.93 from uncollected rentals and underutilized stalls/booths amounting to P2,749,213.27 and P5,604,242.26 respectively, from the 0peration of the Bankerohan Public Market which could have been used in the much needed improvement and maintenance of this economic enterprise.
Bankerohan Public Market is one of the City’s owned and operated market in Davao along with the others located in Agdao, Toril, Calinan and SIR Matina. Compared to other markets, the Bankerohan Public Market is surrounded by a number of private markets engaging in the same business operation. Regulation and operation of this economic enterprise are provided under Article Eleven of City Ordinance No. 0158-05 otherwise known as the 2005 Revenue Code of the City of Davao.
As of December 31, 2007, the City has collected the amount of P46,167,603.78 from the Operations of Markets in the City. Of this amount, P18,211,524.57 was sourced at Bankerohan Public Market. Breakdown is as follows:
Percent Amount to Total Stall/Booth Rental P 11,023,043.98 60.5% Transient/Ambulant Vendors 1,038,026.00 5.7% Community Tax 227,621.00 1.2% Fines and Penalty 16,360.00 0.1% Certification Fee 17,083.00 0.1% Weights and Measure-Meat 8,200.00 0.0% Fish Weight 929,495.28 5.1% Previous 45,029.00 0.2% Fines and Penalties-Previous 7,148.65 0.0% Fines and Penalties-Current 270,481.25 1.5% Light 2,240,699.23 12.3% Miscellaneous 1,291,942.43 7.1% Sale of Stickers 950.00 0.0% Ante-Mortem 626,559.50 3.4% Permit to Slaughter 407,810.25 2.2% Droppings 75.00 0.0% Occupancy 11,000.00 0.1% Transfer fee 50,000.00 0.3% TOTAL P 18,211,524.57 100.00% ========== ======
The above data showed that sixty percent (60%) of the total collection was derived from rental of stalls/booths/spaces. Bankerohan Public Market has an area of nearly a hectare. Originally, the established stalls numbered to 1,015, however, thirty five (35) stalls at the eatery section were demolished thus lowering it to 980. Apparently, the location of the Eatery Section which is above the fish section is not feasible for such business.
The 980 stalls were supposedly clustered into respective sections for fish, meat, dry goods, groceries, rice and corn, vegetables and fruits, eatery, poultry products, flower shop, cold storage and miscellaneous. Had all these remaining spaces been effectively utilized vis-à-vis the corresponding area and approved rent/toll rates, the rental income for calendar year 2007 could have reached P15,588,805.59. Details of the computation is marked Annex L. Aside from the shortfall of P5,604,242.26 for the under utilization of the area, uncollected rentals in the amount of P2,749,213.27 was not included in the above reported income considering that accounting was on a Cash Basis. Schedule of these collectibles is marked Annex M.
Provisions in the Market Code in City Ordinance No. 0158-05 include the following:
Section 337 provides that awardees may relinquish or transfer his privilege over the stall/booth/space to another qualified person, after payment of Transfer Fee.
Section 340 for the Adjudication of vacant stalls to applicants where terms and conditions for the lease of the space were listed in details in the supposed contract. Please refer to Annex N for the stipulated terms and conditions.
Section 341, the prohibition of sub-leasing the stalls.
Section 344 further provides for the following limitations:
(a) Any stallholder, transient of ambulant vendor shall not be allowed to lease or occupy more than one (1) stall/booth/space. However, he/she may be allowed one (1) more stall/booth/space in another market, but in no case, shall he/she be allowed to lease or occupy more than a maximum of two (2) stalls/booths/spaces in the entire City of Davao.
It shall be the duty of the Market Supervisor to see to it that this limitation is strictly observed. Any act discovered or found to be in violation of this limitation, shall immediately be reported to the City Administrator or his authorized representative.
(b) No stallholder/person in the City Public Markets shall construct, repair, renovate or undertake any kind of construction of stall/booth without first securing a permit therefore in writing from the City Administrator or his duly authorized representative. Stall/Booth constructed/repaired or renovated, in violation of this section, may summarily be removed or destroyed by the City Administrator or his duly authorized representative or his agent and/or employee.
(c) The transferor who availed Section 337 hereof is prohibited to participate in any raffling of stall/booth/space nor acquire the same as transferee in the City-owned public markets.
(d) The awardee, stallholder, Lessee, transferee shall not be allowed to use or engaged business on the occupied stall/booth/space other than what it is intended or purpose, i.e., Market Section.
(e) Any extension of the stall/booth/space may be allowed with the written approval from the City Administrator or his duly authorized representative provided that it is not more than one (1) foot of the aisle, movable, and not concrete or permanent structure except at the Rice Section where they may be allowed with a maximum of two (2) feet intended for rice box or display.
In case of sidewalk surrounding the market building, the extension may be allowed with a maximum of one-third (1/3) of the total length with the same requirements afore-cited hereto.
Section 349 further states that no person shall peddle, hawk, sell, offer or expose for sale any article in the passageway or aisle used by buying public in any City Markets.
That to avoid unjust competition, peddlers or hawkers shall not be permitted to offer for sale, in the city markets and their surroundings within a radius of two hundred (200) meters where goods are sold or exposed for sale in the stalls, or booth of said market, neither shall they may be permitted to expose or sell merchandise on sidewalks, courts (patios) or places designed and or intended for the passage of the public to the City Markets. Market Officials and personnel and policemen detailed in the vicinity of the City Market shall exercise vigilance on this matter and are hereby enjoined to strictly comply with these provisions.
Section 355 finally provides for the revocation of Lease which state-
(a) Failure to pay rental fees within the first twenty (20) days of the month, in case of monthly payment or for five (5) consecutive days, in case of daily payments (arkabala), shall be sufficient cause for the revocation of the lease, and/or for ejectment of the stallholder from his/her stall/booth or space, by the City Administrator or his duly authorized representative thru Market Committee Resolution and in accordance with the law on due process.
(b) The Contract of Lease may also be revoked in violations of any provisions hereof and other allied laws by the City Administrator or his duly authorized representative thru the Market Committee Resolution and with due process
As of to date however, no Implementing Rules and Regulations (IRR) was yet formulated for the approved Market Code.
Verification of the Operation of the Bankerohan Public Market disclosed some practices which are found to be contrary to the above provisions resulting to the reduction of supposed income that can be generated from these particular economic enterprise. Existing conditions are herein discussed, thus:
Contracts were not renewed regularly pursuant to Section 340 on the terms and condition that Contract of Lease shall be for a period of one (1) year only. The two (2) months deposit and the one (1) month advance as further provided, if any, was not reflected in the Financial Reports of the Operation of Markets.
Since the ratification of the 2005 Revenue Code, out of the 980 stalls, only twenty (20) renewal of lease contract were due for signature by the City Administrator and eighty six (86) applications were on process. Reasons for the slow turn out included the fact that most occupants were not the awardees, or accordingly due to the complexities of the necessary requirements or for other reasons that needs to be attended to by the Market Committee.
Of the list of stallholders available, it was observed that stallholder’s name extended within a family, that is, from the father, to the mother, then to the children and even to other relatives.
Financial Reports showed that only one transfer was effected during the year. Validation of actual occupants revealed that in a number of stalls, awardees were not anymore the actual occupants. That actual occupants had some arrangement with the awardees to sub-lease the space. In cases when the awardees has an outstanding obligation with the City for their rental, agreement was made that actual occupant will pay the arrears. Interviews further revealed that sub-leasing business is a common practice market wide where the awardees earned income tothe disadvantage of the actual occupants. Taking cases in the Rice and Corn Section, the monthly rate per Market Code is only P2,697.00, however, actual occupant is paying P5,000.00 to the awardees. For those who occupied more that one (1) stall in the market, sub-leasing therefore is a profitable business. In some instances, awardees incur defaults in paying rents to the city despite the collections made by them from the actual occupants. In this case, the City Treasurer resorted to collect directly from the actual occupants. With this practice, the name of the awardees would not appear in the official receipts issued by the City Treasurer but that of the name of the actual occupants resulting to uncoordinated records of the City Treasurer and the Economic Enterprise.
In other instances, where stalls were abandoned by awardees, stalls were occupied by anybody. The City Treasurer based on rates provided for transient vendors collected from the actual occupants found therein. The awardees on the other hand were continually computed rental thus the arrearages. Other awardees who were in default and seem to have no means to settle their account likewise abandoned the stall and occupy smaller spaces within the market building paying the City on a daily basis as transient vendors.
Stallholders arrearages ranged from one (1) month even extended up to seven (7) years. Some were not anymore around, some were around occupying space as transient vendors and others just dare not to settle their account considering that automatic revocation of the lease were not imposed nor legal action was resorted to. Thus, resulting to arrearages totaling P2,749,213.27. Details marked as Annex M.
Another practice contrary to the provision of the Market Code is the tolerance of allowing stallholders extend spaces to more than what is allowed. Spaces occupied by these stallholders were collected toll fees by the City Treasurer based on rates for transient vendors. The tolerance of allowing stallholders extend not only to stallholders in spaces adjacent to their stall but to other spaces within the building. Accordingly, these stallholders were allowed to occupy spaces along the main alleys because their stalls were not strategically visible to the buying public. Stallholders therefore paid the city as awardees or as actual occupants and at the same time transient vendors. These awardees make use of the awarded stalls as bodega or none at all. Some did not anymore bother to pay the rents but settle as transient vendors within the building contributing again to the list of uncollected rents.
Transient vendors within the market building extend not only to awardees but to a number of vendors. They are visibly located along the main alleys of the meat section, of the fish section and every where. These transient vendors have stayed in such spaces for a number of years occupying even more than the space authorized for the awardees. Proper sectioning of stall therefore was not in order. In main alleys of the meat and fish section, we can see vegetables, groceries dried fish and the likes. Stallholders seemingly engaged in general merchandising where they sell anything and everything in their stall.
On the other hand, well taken is the favorable variance in the collections from the stall rentals for fruits, vegetable and variety wherein the actual collection exceeded the supposed estimated based on the allotted section to a total of P1,101,077.45. Please see Annex L.
Taking into account the concerns of the stallholders who opt to occupy small spaces along the alleys as transient vendors, inspection was conducted on the abandoned stalls. It was found that the alleys were narrow and dim, sanitation is not so good and since some were utilized as bodega, goods were placed in the alleys adding congestion to the area. With this condition, understandably the buying public would not dare go hence, goods displayed in that location would just go into waste. The vendors naturally would not look for means to sell it out in any way.
Based on the foregoing, the City was deprived of the necessary income from the under utilized spaces and so with the uncollected rentals due to some lapses in the implementation of the provisions of the market code.
The Market Administrator were amenable to the observations noted and committed to do some measures to improve the Bankerohan Public Market Operation specially on the move to collect the long overdue accounts.
Recommendation for Davao City Government:
Direct the Market Committee to come up with the much needed Implementing Rules and Regulations (IRR) so as to explicitly interpret the provisions stipulated in the Market Code.
This body shall study the condition of the stallholders who were in default in paying their rentals and if warranted, impose legal action pursuant to the provision of the market code. This is also in fairness to those who are religiously paying their dues.
To maximize the effective utilization of the market, there is a need to study the proper subdivision of the stalls. For what is the use of the many stalls when they could not be utilized properly. For goods to be sold, specially in the market, it is elementary that they should be conveniently visible to the buying public. With the existing sectioning particularly in the interior of some buildings, the inside alleys seem to be too narrow and congested compared to the main alleys. Thus, the need to re-structure the same by compromising some abandoned stalls so as widen the interior alleys where it would appear that all alleys can be projected by the buying public as main alleys.
Stricter implementation on the proper sectioning shall be imposed. Section for fish should only for fish, meat section for meat, vegetables for vegetables, fruits for fruits and so on. General merchandisers may be given space but see to it that unjust competition be neutralized.
