Вы находитесь на странице: 1из 50

LOCAL DISASTER RISK

REDUCTION and MANAGEMENT


FUND (LDRRMF)

Prepared by: Team 3_Audit


Group of the South

CRITERIA
ALLOCATION FOR THE
LDRRMF
RA
No. 10121
Section 21 provides that not less than five
percent (5%) of the estimated revenue from
regular sources shall be set aside as the
LDRRMF
to
support
disaster
risk
management activities such as, but not
limited
to,
pre-disaster
preparedness
programs including training, purchasing lifesaving rescue equipment, supplies and
medicines, for post-disaster activities, and
for the payment of premiums on calamity
insurance.

CRITERIA
The 5% LDRRMF shall cover the following:
Thirty percent (30%) lump-sum
allocation for Quick Response Fund (QRF)
Seventy percent (70%) allocation for
disaster
prevention
and
mitigation,
preparedness, response, rehabilitation
and recovery.

CRITERIA
NDRRMC/DBM/DILG Joint Memo.
Circular No. 2013-01
Section 5.0 Utilization of the 70% 0f 5% LDRRMF

5.1 Disaster Prevention and Mitigation


5.2 Disaster Preparedness
5.3 Disaster Response
5.4
Disaster
Recovery

Rehabilitation

and

Disaster Prevention refers to outright


avoidance of adverse impacts of hazards
and related disasters. It expresses the
concept and intention to completely avoid
potential adverse impacts through action
taken in advance such as construction of
dams or embankments that eliminate
flood risks, land- use regulations that do
not permit any settlement in high-risk
zones ad seismic engineering designs that
ensure survival and

function of a critical building in any likely


earthquake.
Disaster Mitigation refers to measures
that would lessen or limit adverse impacts
of hazards and related disasters.
Mitigation
measures
encompass
engineering
techniques
and
hazard
resilient construction as well as improved
environmental
policies
and
public
awareness.

5.2 Disaster Preparedness the


knowledge and capacities developed by
governments, professional response and
recovery organizations, communities and
individuals
to
effectively
anticipate,
respond to, and recover from the impacts
of likely, imminent or current hazard events
or conditions. Preparedness action is
carried out within the context of disaster
risk reduction and management and aims
to build the capacities needed to efficiently
manage all

types of emergencies and achieve orderly


transitions from response to sustained
recovery.
5.3 Disaster Response the provision of
emergency services and public assistance
during or immediately after a disaster in order
to save lives, reduce negative health impacts,
ensure public safety and meet the basic
subsistence needs of the people affected.
Disaster response is predominantly focused
on immediate and short-term needs and is
sometimes called disaster relief.

5.4
Disaster
Rehabilitation
and
Recovery
Rehabilitation are measures that ensure
the ability of affected communities and/or
areas to restore their normal level of
functioning by rebuilding/ rehabilitating
damaged infrastructures.
Post Disaster Recovery the restoration
and improvement where appropriate, of
facilities, livelihood and living conditions of
disaster-affected
communities,
including
efforts to reduce disaster risk factors, in
accordance with the principle of build back
better.

AUDIT
RISK
AUDIT OF THE LDRRMF
A. Computation of LDRRMF
B. Utilization of LDRRMF
There is a risk that the
allocation for DRRMF was not in
accordance with Republic Act
No. 10121.

AUDIT OF THE LDRRMF

OBJECTIVE
S

A. Computation of LDRRMF

1. To determine whether the 5% of the total


estimated revenue from regular sources has
been set aside for the LDRRM Fund.
2. To determine whether the LDRRM Fund
was correctly allocated.
(30%) = QRF
(70%) = PMPR3 Fund

PROCEDUR
ES

1. Secure a copy of the Annual/ Supplemental


Budget/ Appropriation Ordinance
for
calendar year 2013 of the General Fund.
2. Verify and compute/review computation of
the 5% of the total estimated revenue from
all sources.
3. Secure a copy of the SB Resolution
authorizing the utilization of the 70% for
Mitigation and Disaster Preparedness Fund.

PROCEDUR
ES
4. Secure a copy of the LDRRM Plan for CY
2013.
5. Prepare Working Paper and note
differences,
if any.
6. Prepare Audit Observation Memorandum
(AOM).
7. Issue AOM.

AUDIT
AUDIT OF THE LDRRMF
RISKS
B. Utilization of LDRRMF
1. There is a risk that the LDRRMF was not recorded to
its proper account classification in the books of the
agency.
2. There is a risk that expenses charged against the
LDRRMF were not in accordance with the duly
approved LDRRM Plan and Joint Memo Circular No.
2013-1 dated March 25, 2013.
3. There is a risk that the activities incorporated in the
LDRRM Plan were not proper charges to LDRRM
Plan and Joint Memo Circular No. 2013-1 dated
March 25, 2013.

OBJECTIVE
S
B. Utilization of LDRRMF

1. To determine whether the LDRRMF was recorded


properly and duly taken up in the books of account
of the LGU.
2. To determine whether the sources and utilization of
the DRRMF were incorporated in the DRRM Plan,
as well as in the DRRM Investment Plan.
3. To determine whether the 70% allocation for
Mitigation and Preparedness was utilized in
accordance with the LDRRMP.

PROCEDUR
ES
B. Utilization of LDRRMF

1. Obtain/Secure from the management a copy of the


LDRRM Plan and LDRRM Investment Plan.
2. Review/Evaluate programs/projects/ activities to
be undertaken if these conformed with the
activities, as required under NDRRMC/DBM &
DILG Joint Memorandum Circular No. 2013-1.
3. Review
and
evaluate
the
programs/projects/activities in the LDRRMP, and
take note of any deviation.
4. Gather disbursement vouchers, pertaining to
expenses charged to the LDRRMF and verify if
the

PROCEDUR
ES
B. Utilization of LDRRMF

5.
6.
7.
8.

natures of the transactions were in accordance with


the programs/ projects included in the Local
Disaster Risk Reduction and Management Plan.
Obtain a Report on Sources and Utilization of the
DRRMF for the period under review.
Trace transactions to the subsidiary ledgers
maintained by the accounting office.
Prepare Working Paper and note differences, if any.
Prepare Audit Observation Memorandum (AOM).

AUDIT OF THE LDRRMF

B. Utilization of the LDRRMF

AUDIT
RISK

There is a risk that QRF could


be utilized in programs/activities
which are supposed to be
chargeable to other funds.

B.

OBEJECTIV
ES
Utilization of the LDRRMF
To determine whether the 30%
Quick Response Fund (QRF)
was utilized for relief and
recovery programs of the
LGUs stricken by disasters,
calamities,
epidemics
or
complex emergencies.

PROCEDUR
ES

1. Obtain a copy of the local Sanggunian


Resolution and the declaration of state of
calamity in the area.
2. Obtain a copy of the Municipal Risk Reduction
& Management Office (MRRMO) report on the
extent of damages caused by calamities, disaster,
epidemic, etc.
3. Retrieve/Post-audit disbursement vouchers
charged to the 30% Quick Response Fund
(QRF).
4. Take note of the Projects and activities in
relation to Disaster Response.

PROCEDUR
ES
5. Evaluate/ Verify nature of expenses charged
against the 30% QRF.
6. Prepare Working Paper and note any deviation/
difference, if any.
7. Prepare and issue Audit Observation
Memorandum (AOM).

30% QUICK RESPONSE FUND

OBJECTIVE

B. Utilization of the 30% QRF

To
determine
whether
procurement of supplies and
equipment chargeable against the
LDRRMF was in accordance with
the Government Procurement Act
of the R.A. 9184.

B. Utilization of the 30% QRF

AUDIT
RISK

There is a risk that R.A. 9184


was not strictly adhered to in
the procurement of supplies and
equipments.

1. Gather
all
procurement.

PROCEDUR
ES
disbursement
pertaining

to

2. Post-audit and review the attached supporting


documents and note if all the transactions
conform with the procedure on procurement.
3. Prepare working paper
deviation/difference, if any.
4. Prepare
and
issue
Memorandum (AOM).

and

Audit

note

any

Observation

TENTATIVE A
OM

TENTATIVE
AOM
Programs/Activities
incorporated in the Work and
Financial Plan amounting to
P1,034,527.00 to be funded
from the 70% DRRM fund were
not in line with the programs
of activities stated under Sec.
5.1
&
5.2
of
the
NDRRMC/DBM/DILG
Memorandum
Circular
No.

TENTATIVE
AOM
Sections 5.1 & 5.2 of NDRRMC/DBM
and
DILG Joint Memorandum Circular No.
2013-1 dated March 25, 2013, requires
that:

5.1
Disaster
Prevention
and
Mitigation
Disaster Prevention refers to outright
avoidance of adverse impacts of hazards
and related disasters. It expresses the
concept and intention to completely
avoid potential adverse impacts through
action taken in advance such as

TENTATIVE
flood risks, land-use regulations
AOM that do

not permit any settlement in high-risk


zones ad seismic engineering designs
that ensure survival and function of a
critical building in nay likely earthquake.
Disaster Mitigation refers to
measures that would lessen or limit
adverse impacts of hazards and related
disasters.
Mitigation
measures
encompass engineering techniques and
hazard resilient construction as well
improved environmental policies and
public awareness.

TENTATIVE
AOM

5.2
Disaster Preparednessthe
knowledge and capacities developed by
governments, professional response and
recovery organizations, communities and
individuals to effectively anticipate, respond
to, and recover from the impacts of likely,
imminent or current or current hazard events
or conditions. Preparedness action is carried
out within the context of disaster risk
reduction and management and aims to build
the capacities needed to efficiently manage
all types of emergencies and achieve orderly
transitions from response to sustained
recovery.

TENTATIVE
AOM
Review of the LGUs Annual
Budget for
CY 2013 revealed that a total of
P6,897,112.00 or 5% of the total
estimated income has been set aside
as LDRRM Fund to defray expenses for
relief
and
rehabilitation
services
affected by disasters brought about by
natural
calamities.
Of
the
P6,897,112.00, P 1,765,000.00 was
allotted
for
preparedness
and
P2,309,527.00 for Prevention and
Mitigation.

TENTATIVE
AOM

The 70% component was short by


P753,451.40 as required under the
said circular, computed as follows:
Total estimated income from all sources (2013)
P137,942,240.00
Multiplied by
5%
Total Appropriation in the Annual Budget (5% LDRRMF)
P
6,897,112.00
Multiplied by
70%
70% allowable allocation for Disaster
prevention, and Mitigation Preparedness, response,
rehabilitation and recovery
4,827,978.40
Less: Total LDRRMF allocated in the Work & Financial Plan
4,074,527.00
Variance (Deficit)
P 753,451.40

TENTATIVE
Analysis of the CY 2013 Work andAOM
Financial Plan of

the DRRM Council (70% out of 5% Calamity Fund


(see Annex A) showed that there were some
projects and activities that did not conform with
the activities to be undertaken for Risk Reduction
and Management.
The following observations
were noted:
1. Strengthening of Intelligence network for
armed conflict in the amount of P30,000.00 is a
proper charge to Peace and Order Council (POC)
or to the Confidential and Intelligence fund of the
LGU.
2. Inventory of evacuation center and fish cages
in the amount of P10,000 and P30,000,
respectively, are not a guarantee that conflict
with armed men and Fishkill could be mitigated.

TENTATIVE
AOM
3. Appropriation for Legislative Measures
amounting to P200,000.00 has nothing to do
with the Prevention and Mitigation of the
incurrence of Floods and Heavy rains.
4. Food for work with a total amount of
P564,527.00 could not prevent nor mitigate
floods, strong winds/ heavy rains. Instead,
these are immediate assistances to victims
of disasters, which are proper charges to the
Quick Relief Fund (QRF).

TENTATIVE
Medicines andAOM
establishment

5. Purchase of
of Disaster Operation Center in the amount
of P110,000.00 is a direct response during or
immediately after a disaster in order to
reduce negative health impact and to meet
the basic subsistence needs of the affected
constituents.
6. Purchase of vegetable seeds in the
amount of P100,000.00 is an alternative
livelihood relief or assistance to victim of El
Nino hence the purchase of which could not
prevent and mitigate the incurrence of El
Nino in the locality.

TENTATIVE
AOM
that there
were also

We noted, further,
activities incorporated in the Work and Financial
Plan that could prevent and mitigate incurrence
of flash floods, however these were not given
any appropriation. These were as follows;

1.Installation of Gabions at Barangay Lower


Maculan
2. Re-channeling of waterflow along Allah River
which may affect flash flood prone barangays
3. Construction of Concrete Lined canal at
barangay Poblacion
4. Rip-rap zone regeneration at
barangays
Lower Maculan, Denlag, Halilan and Sitio
Talubek

TENTATIVE
AOM
the
disbursement

Post-audit
of
vouchers
covering
transactions
charged to LDRRMF from January to
September 30, 2013 revealed that a
total of P1,578,973.75 was released to
various victims of calamities. These
were not supported by a Resolution of
the Local Sanggunian declaring the
LGU to be under a state of calamity or
a Presidential declaration of state of a
calamity upon recommendation of the
NDRRMC.

These transactions
follows:

TENTATIVE
AOM
are summarized

as

1.A total of P485,970.00 was utilized for


shelter assistance to victims of strong wind;
2. A total of P764,500.00 worth of foodstuffs
were purchased for relief operation to
victims of calamities;
3. A total of P328,503.78 was used for the
purchase of Fuel Oil and Lubricants, for the
rehabilitation of damaged roads.

TENTATIVE
AOM
In a nutshell, allocation of
funding for the project and
activities identified by the MDRRM
Council was not properly planned
and
prioritized,
thus
future
disasters
brought
about
by
calamities could not be mitigated
if not prevented.

TENTATIVE
AOM
We recommend the following remedial
measures:

1. Require the MDRRM Council to prepare and align


their activities that could address the following:
a. Disaster Prevention and Mitigation
b. Disaster Preparedness
c. Disaster Response
d. Disaster Rehabilitation and Recovery

2. The MDRRM council should give priority to


activities that could mitigate, if not prevent, the
adverse effects of disasters or calamities in the
area.

3. The MDRRM Council should also allocate funds for


rehabilitation and post disaster recovery activities

TENTATIVE
AOM

The Municipality failed to


adhere in the Accounting
and Reporting Guidelines
on the recording of the
Local
Disaster
Risk
Reduction
Management
Fund (LDRRMF), pursuant
to COA Circular No. 2012
002, dated September 12,

Section 5.1.1 of COA


states that:

TENTATIVE
AOM
Circular
No. 2012-02

The appropriation for the Local Disaster Risk


Reduction Management shall be in the
General Fund Budget. The existing program
category Budgetary Reserve 9998 and
Outlays for Disaster and Other Calamities
9991 shall be charged to Disaster Risk
Reduction and Management DRRM 9950.
The QRF which is a lump sum appropriation
shall be under the functional classification
Other Purpose.

TENTATIVE
AOM
mitigation
projects

The preparedness and


as
identified and mitigation projects as identified in the
LDRRMFIP shall be classified under the program for
DRRM and under the functional classification of the
implementing office using the following project
breakdown and codes.
Description

Code
9

Functional
Classificati
on

Other Purpose (QRF)

Program

DRRM

Projects

Relief and Recovery

Preparedness and Mitigation


(P&M) Projects charged to MOOE

P & M Projects charged to CO

Premiums on Calamity Insurance

94

TENTATIVE
AOM
Review of the Municipalitys Annual
and Supplemental Budgets for the
year 2012 revealed that the LGU had
appropriated
the
amount
of
P6,293,074.21 as Local Disaster Risk
Reduction
Management
Fund
(LDRRMF) to support the disaster
risk management activities of the
LGU.

TENTATIVE
AOM
The LDRRMF was sourced
from not
less than five percent (5%) of the
estimated revenues from regular
sources, arrived at as follows:
Sources
Amount
Annual Budget Total Estimated
Income
P122,129,355.65
Supplemental Budget No. 2
increase in IRA
2,242,235.00
Supplemental Budget No. 3 Excess

TENTATIVE
AOM
Thirty percent (30%) of P1,887,922.27
was appropriated for Quick Response
Fund (QRF) or stand-by fund for relief
and recovery projects and activities.
Whereas, the amount of P4,405,151.95
representing 70% shall be allocated for
disaster mitigation, prevention and
preparedness with details as to
projects and activities to be funded.

TENTATIVE
AOM accounts
the LDRRMF

Further verification of
disclosed the following deficiencies:

1. The appropriation for the LDRRMF amounting to


P6,293,074.22 was incorporated in the General
Fund Budget but was not adjusted to its proper
program category from account 9998 Budgetary
Reserve and 9991 Outlays for Disaster and
Other Calamities to account 9950 Disaster Risk
and Reduction Management (DRRM).
2. The unexpended/unobligated balance of the
QRF and the DRRM-MOOE was not transferred to
the Special Trust Fund under the account Trust
Liability DRRM code 438 in the Trust Fund Book.

TENTATIVE
AOM
was not able
to submit

3. The LDRRM Officer


a
Monthly Report on Sources and Utilization of
DRRMF, to be certified correct by the Municipal
Accountant.
4. The accounting office failed to prepare a
separate Registry of Appropriation, Allotments
and Obligation for QRF, MOOE and Capital Outlay.
5. Procurement of one (1) unit Rescue Vehicle for
the relief and rescue operation of the LDRRMC
amounting to P1,360,000.00, was recorded as
motor vehicle Account 241.
6. The LDRRMO was not able to furnish a copy of
the LDRRMF Investment Plan to the Accounting
Office as a basis in the proper classification of
accounts.

TENTATIVE
AOM
transaction of the LGU

Due to the voluminous


brought about by the preparation of the yearend Financial Statements, the classification of
the accounts was not affected. However, the
Municipal Accountant committed to effect the
necessary adjustment in the recording of the
LDRRMF to its proper program category in the
ensuing year. He already instructed his staff in
charge of the recording to prepare a separate
Registry for QRF, MOOE and Capital Outlay.
Also, the LDRRMO assured the team to adhere
with the guidelines in the reporting of the
LDRRMF as required by the said Republic Act.

RECOMMENDATIONS:

TENTATIVE
AOM

Require the Municipal Accountant to effect the


necessary adjustment of the account to its proper
program category and function.
Require also the LDRRMO to furnish a copy of the
LDRRM Investment Plan to the Accounting Office for
proper account classification and recording. The
LDRRMO is also required to submit a Monthly Report
on Sources and Utilization of the DRRMF to the COA
Auditor for a timeless verification thereof.
The unexpended/unobligated balance of the
Quick Response Fund and Disaster Risk and
Reduction Management MOOE should be
transferred to the Special Trust Fund as Trust
Liability-Disaster Risk and Reduction Management.

LOCAL DISASTER RISK


REDUCTION and MANAGEMENT
FUND (LDRRMF)

Th
e
En

Prepared by: Team 3_Audit


Group of the South