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2014 Commission on Audit REPORT ON THE AUDIT OF TYPHOON YOLANDA RELIEF OPERATIONS
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Page 1: REPORT ON THE AUDIT OF TYPHOON YOLANDA RELIEF … · Government Response Post-Yolanda 12 12 13 13 14 III. The Special Audit of the Relief Operations for Typhoon Yolanda Victims COA

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2014

Commission on Audit

REPORT ON THE AUDIT OF TYPHOON YOLANDA RELIEF OPERATIONS

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TABLE OF CONTENTS

Page No. List of Abbreviations

I. Introduction

The Importance of Disaster Risk Reduction and Management (DRRM)

The Philippine Disaster Profile and Status of Major Disaster

Occurrences Evolution of Disaster Related Statutes and Regulations

Current State of Disaster Management System

The National Disaster Risk Reduction and Management Plan

(NDRRMP)

Sources of Funds

1

1

2

3

3

7

9

II. An Overview of the Yolanda Disaster

and Government Efforts in its Aftermath

Before the Storm

The Catastrophic Typhoon

The Aftermath

Government Response Post-Yolanda

12

12

13

13

14

III. The Special Audit of the Relief Operations for Typhoon Yolanda

Victims

COA Resolution No. 2013-024

Ocular Inspection and Process Documentation

Development of Visual Presentation

Data Gathering on Actual Grants and Donations for Yolanda Victims

Creation of Audit Teams

Audit Instructions

Difficulties of the Audit

What We Found

Recommendations

Endnotes

IV. Highlights of the Audit Findings and Recommendations by Agency

Department of Social Welfare and Development (DSWD)

Department of Public Works and Highways (DPWH)

Department of Health (DOH)

Office of Civil Defense (OCD)

Department of Interior and Local Government (DILG)

National Food Authority (NFA)

20

20

21

21

21

22

23

24

25

27

29

30

30

49

58

69

86

96

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LIST OF ABBREVIATIONS

AFP Armed Forces of the Philippines

BDC Barangay Development Council

BLGS Bureau of Local Government Supervision

BSP Bangko Sentral ng Pilipinas

CAF Certificate of Availability of Funds

CCA Climate Change Adaptation

CCAC Climate Change Advisory Committee

CDP Comprehensive Development Plan

CDRRMC City Disaster Risk Reduction and Management Council

CFO Commission on Filipinos Overseas

CHD Center for Health Development

COBAC Central Office Bids and Awards Committee

COMELEC Commission on Elections

CSC Civil Service Commission

CSO Civil Society Organizations

DA Department of Agriculture

DBM Department of Budget and Management

DENR Department of Environment and Natural Resources

DEO District Engineering Office

DepEd Department of Education

DFA Department of Foreign Affairs

DILG Department of Interior and Local Government

DND Department of National Defense

DOE Department of Energy

DOF Department of Finance

DOH Department of Health

DOJ Department of Justice

DOLE Department of Labor and Employment

DOST Department of Science and Technology

DOT Department of Tourism

DOTC Department of Transportation and Communications

DPWH Department of Public Works and Highways

DRRM Disaster Risk Reduction and Management

DRRROO Disaster Risk Reduction and Response Operation Office

DSWD Department of Social Welfare and Development

DTI Department of Trade and Industry

EO Executive Order

FAiTH Foreign Aid Transparency Hub

FFP Family Food Pack

FO Field Office

FY Fiscal Year

GAA General Appropriations Act

GPPB Government Procurement Policy Board

GSIS Government Service and Insurance System

IEC Information, Education and Communication

LCE Local Chief Executive

LDRRMC Local Disaster Risk Reduction and Management Council

LDRRMF Local Disaster Risk Reduction and Management Fund

LDRRMFIP Local Disaster Risk Reduction and Management Fund Investment Plan

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LDRRMO Local Disaster Risk Reduction and Management Office

LGU Local government unit

LINKAPIL Lingkod sa Kapwa Pilipino

MDRRMC Municipal Disaster Risk Reduction and Management Council

MICT Manila International Cargo Terminal

MMD Materials Management Division

MMDA Metropolitan Manila Development Authority

MOA Memorandum of Agreement

MOOE Maintenance and other Operating Expenses

NAMRIA National Mapping and Resource Information Authority

NCR National Capital Region

NDCC National Disaster Coordinating Council

NDRRMC National Disaster Risk Reduction and Management Council

NDRRMF National Disaster Risk Reduction and Management Fund

NDRRMP National Disaster Risk Reduction and Management Plan

NEDA National Economic and Development Authority

NFA National Food Authority

NGO Nongovernmental organization

NIA National Irrigation Authority

NROC National Relief Operations Center

OCD Office of Civil Defense

OP Office of the President

OSEC Office of the Secretary

PAGASA Philippine Atmospheric, Geophysical and Astronomical Services Administration

PARR Presidential Assistant for Rehabilitation and Recovery

PCSO Philippine Charity Sweepstakes Office

PD Presidential Decree

PDRRMC Provincial Disaster Risk Reduction and Management Council

PDRRM-2010 Philippine Disaster Risk Reduction and Management Act of 2010

Phivolcs Philippine Institute of Volcanology and Seismology

PNP Philippine National Police

PRC Philippine Red Cross

PS Personal Services

QRF Quick Response Fund

RA Republic Act

RD Regional Director

RDCC Regional Disaster Coordinating Council

RDRRMC Regional Disaster Risk Reduction and Management Council

RDS Relief Distribution Sheet

RIS Requisition and Issue Slip

SARO Special Allotment Release Order

SRR Search, Rescue and Retrieval

SSS Social Security System

TOS Tally out sheet

TESDA Technical Education Skills Development Authority

WSI Warehouse Stock Issued

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I. INTRODUCTION

The Importance of Disaster Risk Reduction and Management (DRRM)

Disaster is a serious disruption of the functioning of a community or a society involving

widespread human, material, economic or environmental losses and impacts, which exceeds the

ability of the affected community or society to cope using its own resources. Disasters are often

described as a result of the combination of: the exposure to a hazard; the conditions of

vulnerability that are present; and insufficient capacity or measures to reduce or cope with the

potential negative consequences. Disaster impacts may include loss of life, injury, disease and

other negative effects on human, physical, mental and social well-being, together with damage to

property, destruction of assets, loss of services, social and economic disruption and environmental

degradation.1 It has two categories, namely, natural and man-made.

Natural disasters are major adverse events resulting from natural processes of the earth or

what is known as acts of God which cause widespread destruction of lives and properties. Its

subgroups and definition are presented below:

Table 1. Natural disaster subgroup definition and classification Disaster

Subgroup

Definition

Disaster Main Types

Geophysical

Events originating from solid earth

Earthquake, Volcano, Mass

Movement (dry) (e.g. Landslides)

Meteorological

Events caused by short-lived/small to meso scale

atmospheric processes (in the spectrum from

minutes to days)

Storm (e.g. Typhoons, Monsoons)

Hydrological

Events caused by deviations in the normal water

cycle and/or overflow of bodies of water caused by

wind set-up

Flood, Mass Movement (wet) (e.g.

Tsunami, Storm Surge)

Climatological

Events caused by long-lived/ meso to macro scale

processes (in the spectrum from intra-seasonal to

multi-decadal climate variability)

Extreme Temperature, Drought,

Wildfire (e.g. El Niño, La Niña)

Biological

Disaster caused by the exposure of living

organisms to germs and toxic substances

Epidemic, Insect Infestation,

Animal Stampede

Source: Annual Disaster Statistical Review 2012:The Numbers and Trends

On the other hand, man-made disasters are influenced by humans and they are often a result

of negligence and human error among other factors.

According to the World Risk Report of 2012, the Philippines ranked 3rd out of 173 countries

based on exposure to hazards (Figure 1). Disaster can strike anytime, anywhere. It can cause

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0 5 10 15 20 25 30

Haiti

Bangladesh

Japan

Russia

India

Afghanistan

Indonesia

Philippines

United States

China P Rep

Climatological Geophysical Hydrological Meteorological

irrevocable damage to life and property if the right measures are not put in place. This can also

bring out the best and the worst in human nature. The manner in which action is taken in response

to the crisis goes a long way in determining how people fare from the experience. Hence, the need

for DRRM.

Figure 1. Top 10 countries by number of reported events in 2011

Source: Annual Disaster Statistical Review 2012: The Numbers and Trends

DRRM is the systematic process of using administrative directives, organizations, and

operational skills and capacities to implement strategies, policies and improved coping capacities in

order to lessen the adverse impacts of hazards and the possibility of disaster. Prospective DRRM

refers to risk reduction and management activities that address and seek to avoid the development

of new or increased disaster risks, especially if risk reduction policies are not put in place.2

The Philippine Disaster Profile and Status of Major Disaster Occurrences

The Philippines lies on the Pacific Ring of

Fire, where about 80% of the world’s largest

earthquakes occur. It is situated along two major

plates of the world–the Eurasian and Pacific

Plates. The country’s location makes it more

likely to be hit by natural disaster such as

volcanic eruptions, earthquakes, typhoons,

tsunamis and tornadoes. Data from the National

Disaster Coordinating Council (NDCC) reveals

that an average of 20 quakes occurs per day in the

country. About 100 to 200 earthquakes are felt

every year and in the last 400 years, the country

has experienced 90 destructive earthquakes.

There are 300 volcanoes that can be found in the Philippines, 22 of which are active. Its

Source: http://www.htekidsnews.com

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36,289-kilometer coastline is vulnerable to tsunamis. Furthermore, the Philippines is located along

the typhoon belt on the North Pacific Basin in the Pacific where 75% of typhoons originate. An

average of 20 to 30 typhoons hit the country per year, 5 to7 of which can be destructive. The

eastern sea board is highly exposed to typhoons with wind speed of 200kph. Some 25% of

typhoons of such high wind speed in the world occur in the Philippine area of responsibility. From

1970-2009, annual average direct damage to disasters ranged from P5 billion to P15 billion

(US$100 million to US$300 million), indirect and secondary impacts further increase this cost.

Cost of direct damage is equivalent to more than 0.5% of the national gross domestic product. The

annual average of casualties due to natural disasters is 1,002. Flooding is considered the topmost

disaster in the country in the last five (5) years.

In a study conducted by World Bank in

2008, the country was identified as a natural

disaster hot-spot with approximately 50.3% of

its total area and 81.3% of its population

vulnerable to natural disasters. In the 2012

World Risk Report published by the United

Nations University Institute for Environment

and Human Security (UNU-EHS), the

Philippines’ Risk Index of 27.98% ranked third

among disaster-prone countries worldwide

(Table 2).

Table 2. 2012 World Risk Index

Source: UNU-EHS

Rank Country Risk (%)

1 Vanuatu 36.31

2 Tonga 28.62

3 Philippines 27.98

4 Guatemala 20.75

5 Bangladesh 20.22

6 Solomon Islands 18.15

7 Costa Rica 17.38

8 Cambodia 17.17

9 Timor-Leste 17.13

10 El Salvador 16.89

Table 3.Top 10 Natural Disasters

in the Philippines(1900 to 2013)

Disaster Date No. of People

Killed

Earthquake 16/08/1976 6,000

Storm 05/11/1991 5,956

Earthquake 16/07/1990 2,412

Storm 04/12/2012 1,901

Storm 29/11/2004 1,619

Storm 13/10/1970 1,551

Storm 15/12/2011 1,439

Storm 01/09/1984 1,399

Storm 30/11/2006 1,399

Volcano 31/01/1911 1,335

Source: "EM-DAT: The OFDA/CRED International Disaster

Database

For the period 1900 to 2013, the Moro

Gulf Earthquake on August 16, 1976 ranked

No. 1 among natural disasters that hit the

Philippines with a death toll of 6,000 people

(Table 3). That earthquake claimed thousands

of casualties because it happened just after

midnight when most people were sleeping

and it spawned a great tsunami which struck

the coasts from different directions and

caught the people unaware.

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Table 4.Top 10 Natural Disasters in the

Philippines(1900 to 2013) sorted by number

of total affected people

Disaster Date Total No. of

People

Affected

Storm 04/12/2012 6,246,664

Storm 12/11/1990 6,159,569

Storm 24/09/2009 4,901,763

Storm 21/06/2008 4,785,460

Storm 29/09/2009 4,478,491

Flood 06/08/2012 4,451,725

Storm 21/10/1998 3,902,424

Storm 27/09/2006 3,842,406

Storm 20/11/1973 3,400,024

Storm 21/10/1988 3,250,208

In terms of the total number of people

affected, typhoon Pablo (international name:

Bopha) on December 4, 2012, got the highest

number with a total of 6.2 million (Table 4).

Pablo smashed into Mindanao from

the Pacific Ocean with gusts of up to 210

kilometers an hour. It made landfall thrice in

the Philippines: first in Baganga, Davao

Oriental on December 4, 2012 at around 4:45

a.m. and then at the southern part of

Dumaguete City, Negros Oriental at 5:30

p.m. of the same day, losing practically none

of its strength and in the following day, at

8:00 a.m., it made landfall again in Roxas

town in Palawan.

Table 5.Top 10 Natural Disasters in the Philippines

(1900 to 2013) sorted by economic damage costs

Disaster Date Damage

(000 US$)

Storm 04/12/2012 1,692,961

Flood 04/09/1995 700,300

Storm 29/09/2009 585,379

Storm 12/11/1990 388,500

Earthquake 16/07/1990 369,600

Storm 24/09/2011 344,173

Storm 21/06/2008 284,694

Storm 18/10/2010 275,745

Storm 03/11/1995 244,000

Storm 21/10/1988 240,500

Source: "EM-DAT: The OFDA/CRED International Disaster

Database

For the period 1900 to 2013, typhoon

Pablo registered the highest catastrophic cost

amounting to US$1.69 billion (Table 5).

With more than 7,000 islands and over

36,000 kilometers of coastline, the

Philippines remains highly vulnerable to the

impacts of natural disasters, including the

global phenomenon of climate change.

Because of global warming, environmental

degradation, high population density and

poverty conditions, the impact of natural

disasters in the country have become highly

severe.

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Evolution of Disaster Related Statutes and Regulations

The Philippine government, from its pre-Commonwealth days up to the present, has evolved

a scheme to counteract the effects of disasters, both natural and human-induced. Presidential

Decree (PD) 1566 entitled "Strengthening the Philippine Disaster Control, Capability and

Establishing the National Program on Community Disaster Preparedness," issued on June 11,

1978, is the country's basic law on disaster management. It lays down the policy, institutional and

operational framework for the disaster risk management system in the country.3

From this legal mandate, the National Calamities and Preparedness Plan approved in 1983

was revised and issued in August 1988 together with the Implementing Rules and Regulations of

PD 1566.

Efforts have been made since the mid-1990s to update and amend PD 1566 after its

enactment. In response to the high risk levels of disasters, the Philippine government has enacted

two legislations relating to existing and projected climate change impact: the Climate Change Act

of 2009 and Republic Act (RA) 10121 or the Philippine Disaster Risk Reduction and Management

Act of 2010 (PDRRM-2010).These twin laws on DRRM have common goals and objectives: to

increase resilience of communities and the country against natural disasters and reduce damage

and losses due to disasters.4

Regulations on DRRM-related activities have been and are being issued by agencies such as

the Department of Budget and Management (DBM) and Commission on Audit (COA) for those

pertaining to fiscal matters, the Department of Interior and Local Government (DILG) and Local

Government Units (LGUs) for those pertaining to DRRM of LGUs, and the Department of Social

Welfare and Development (DSWD) for disaster response activities.

Current State of Disaster Management System

The Governance Structure on DRRM

The National Disaster Risk Reduction and Management Council (NDRRMC)5 or formerly

called the NDCC, is an agency under the Department of National Defense (DND), responsible for

ensuring the protection and welfare of the people during disasters or emergencies.

RA 10121 provided an expanded membership to the previous NDCC from 19 to 44

members (Figure 2). The former NDCC, as chaired by the DND Secretary, was composed of

Cabinet Secretaries and Heads of Agencies with major contributions to disaster response. The new

law transformed the NDCC to the NDRRMC, which is still headed by the DND but with four (4)

Vice-Chairpersons, namely: the Department of Science and Technology (DOST) Secretary for

disaster prevention and mitigation, the DILG Secretary for disaster preparedness, the DSWD

Secretary for disaster response, and the Director-General of the National Economic and

Development Authority (NEDA) for disaster rehabilitation and recovery.

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Aside from membership of government agencies, the NDRRMC now includes financial

institutions, local government leagues, the private sector and civil society organizations (CSOs)

which reflects the “Whole of Society” approach on disaster management.

Figure 2.Expanded Membership of the NDRRMC Under RA 10121

The NDRRMC is supported by a network of DRRM Councils (Figure 3).

Figure 3. DRRM Council Networks

The structure of the NDRRMC is replicated in all regions. Local Disaster Risk Reduction

and Management Councils (LDRRMCs) – Provincial, City, and Municipal Levels – have their

own councils formed and chaired by their respective Local Chief Executives (LCEs).

OLD

ND

CC

: 1

9 M

em

be

rs Chairman: Secretary, DND

Members:

•Secretary, DILG

•Secretary, DPWH

•Secretary, DOH

•Secretary, DSWD

•Secretary, DA

•Secretary, DepEd

•Secretary, DOF

•Secretary, DOLE

•Secretary, DTI

•Secretary, DOTC

•Secretary, DOST

•Secretary, DBM

•Secretary, DOJ

•Secretary, DENR

•Director, PIA

•Sec-Gen - PNRC

•Chief of Staff, AFP

•A,OCD: Exec Offr/Member

NEW

ND

RR

MC

: 44

Me

mb

ers

Chairperson: Secretary, DND

Vice-Chairpersons:

Sec, DOST – Prevention &

Mitigation

Sec, DILG –Preparedness

Sec, DSWD – Disaster Response

DG, NEDA – Rehab & Recovery

Exec Dir: OCD Administrator

Members: 39

•14 Depts: DOH, DENR, DA, DepEd, DOE, DOF, DTI, DOTC, DBM, DPWH, DFA, DOJ, DOLE & DOT

•12 gov’t agencies: OES OPAPP, CHED AFP, PNP, OPS, NAPC, PCW, HUDCC,

CCC, PHILHEALTH & OCD

•2 Gov Financial Inst (GSIS & SSS)

•1 Quasi-government agency (PRC)

•5 LGU Leagues

•4 Civil Society Organizations

•1 Private Sector Organization

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4 Priority Areas w/ 4 Long Term

Goals

14 Objectives

24 Outcomes 56 Outputs 93 Activities

At the barangay level, the Barangay DRRM Committee is assumed by the existing Barangay

Development Council (BDC).

The Regional Disaster Risk Reduction and Management Council (RDRRMC)6 is tasked to

coordinate, integrate, supervise and evaluate the activities of the LDRRMC. It is responsible in

ensuring disaster sensitive regional development plans and in case of emergencies shall convene

the different regional line agencies and concerned institutions and authorities.

The LDRRMC is responsible in taking the lead in preparing for response and recovery from

the effects of any disaster based on the following criteria:

The BDC, if a barangay is affected;

The City/Municipal DRRMC, if two or more barangays are affected;

The Provincial DRRMC, if two or more municipalities are affected;

The Regional DRRMC, if two or more provinces are affected; and

National DRRMC, if two or more regions are affected.

The NDRRMC and intermediary LDRRMCs act as support to LGUs, being in the frontline

and having the primary responsibility of responding to disaster. The NDRRMC and LDRRMCs

set the coordination mechanisms and policies for the private sector and civil society groups.7

The National Disaster Risk Reduction and Management Plan (NDRRMP)

The NDRRMP for 2011-2028, approved on February 7, 2012, is the road map on how

DRRM shall contribute to sustainable development (Figure 4). It fulfills the requirements of

PDRRM-2010 and provides details on programs and projects to be pursued, timelines to be met

and lead agencies and groups who have the responsibility as well as the resources needed for

implementation.

Likewise, it stipulates the DRRM approaches and strategies to be applied to manage

identified hazards and risks. The roles of agencies, their responsibilities and lines of authority at

all levels of government are also identified.

The Plan provides the vertical and horizontal coordination mechanism in pre-disaster and

post-disaster activities.

Figure 4.The National Disaster Risk Reduction and Management Plan

Significantly, it includes a system for monitoring and evaluation of programs.

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The four priority areas are prevention and mitigation; disaster preparedness; disaster

response; and rehabilitation and recovery (Figure 5).

Figure 5.DRRM Priority Areas and Long-Term Goals

The projects under the four priority areas are as follows:

Table 6. Scope of the DRRM Priority Areas

Prevention and Mitigation Preparedness

• Development of alarm and early warning

systems

• Nationwide flood forecasting and

monitoring

• Geo-hazard mappings

• Comprehensive land use planning,

building and safety standards

• Engineering interventions

• Flood control structures

• Contingency planning

• Enhancement of operation and coordination centers

• Organizing, training and equipping responders

• Organizing and mobilizing community volunteers

• Conduct of disaster trainings and drills

• Prepositioning of equipment and supplies

• LCE’s DRRM roles and responsibilities

• Commitment to DRRM action

• Regional DRRM Summit on July and August 2013

• Newly-elected LCEs on board

• Craft Local DRRM Plans by October 01, 2013

Response Recovery and Rehabilitation

• Search, rescue and retrieval (SRR)

operations

• Humanitarian aid, relief and health

services

• Provision for temporary shelter, water,

sanitation and hygiene

• Setting-up “One-Stop-Shop”

• Management of evacuation centers

• Financial assistance to calamity victims

• Post Disaster Needs Assessment

• Reconstruction of damaged houses and buildings

• Resettlement/Relocation

• Provision for livelihood

• Restoration and improvement of destroyed facilities

Disaster Prevention and Mitigation

Avoid hazards and mitigate their potential impacts by reducing

vulnerabilities and exposure and enhancing capacities of communities

Disaster Preparedness

Establish and strengthen capacities of communities to anticipate, cope and recover from the negative impacts of emergency occurrences and disasters

Disaster Response

Provide life preservation and meet the basic subsistence needs of affected

population based on acceptable standards during or immediately after a

disaster

Disaster Rehabilitation and Recovery

Restore and improve facilities, livelihood and living conditions and organizational capacities of affected communities, and

reduced disaster risks in accordance with the “building back better” principle

Safer, adaptive and disaster resilient Filipino communities

towards sustainable development

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Sources of Funds

At present, the country has disaster risk financing windows: (1) the National DRRM Fund

(NDRRMF) or the Calamity Fund in the General Appropriations Act (GAA); (2) the Local

DRRM Fund (LDRRMF); (3) the Government Service Insurance System (GSIS), a government-

owned insurer providing catastrophe insurance coverage for government-owned assets; and (4) the

People’s Survival Fund. Funds also come from private, donations, endowments, grants and

contributions.

The NDRRMF is used to fund disaster risk reduction activities and capital expenditues for

pre-disaster operations, rehabilitation and other related activities in the following order of

priorities:8

Priority 1 - For urgent and emergency relief operations, health services, settlement and

rehabilitation of affected populations, as well as the emergency repair and rehabilitation of

vital infrastructures and lifelines damaged by a disaster or calamity;

Priority 2 -For repair, rehabilitation and reconstruction of other damaged infrastructures or

facilities which are not emergency in nature but are necessary for disaster mitigation; and

Priority 3 - For pre-disaster activities outside the regular budgets of line agencies and

proposed capital expenditures for pre-disaster operations.

Under the Special Provisions of the 2013 GAA, requests for Calamity Fund must be

endorsed by the NDRMMC to the Office of the President for approval. Upon the President’s

approval of the requests, the DBM releases the funds directly to the implementing agencies.

In times of disasters of great magnitude, the NDRRMC also receives donations either

through the OCD, DOH or DSWD. Most of the time, donated funds have specific intents and

purposes. For instance, financial assistance given to bereaved families and immediate relief and

early recovery requirements are sourced from donated funds.

From 2010 to 2012, a total of P9.434 billion NDRRMF was released to national agencies

and LGUs, excluding infusions from official development assistance. For fiscal year (FY) 2013,

the appropriated amount for the NDRRMF or the Calamity Fund in the national government’s

approved budget amounted to P7.5 billion. The breakdown of the special purpose fund is as

follows:

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Table 7. Calamity Fund Appropriations for FY 2013

Source: GAA, FY 2013

As of July 31, 2014, 99% of the total Calamity Fund for FY 2013 has already been released

as indicated in Table 8.

Table 8. Calamity Related Resources Expenditures and Releases, FY 2013 (As of July 31, 2014)

Agencies Amount

MOOE Capital Outlay Total

DOH 0 500,000,000 500,000,000

DILG 467,732,486 467,732,486

DND 0 8,000,000 8,000,000

DPWH 0 2,976,576,027 2,976,576,027

DSWD 3,466,166,189 0 3,466,166,189

LGUs 22,000,000 9,950,000 31,950,000

Total 3,955,898,675 3,494,526,027 7,450,424,702

Source: www.dbm.gov.ph

The Quick Response Fund (QRF) is a portion of the NDRRMF or Calamity Fund pre-

allocated to concerned national government agencies as standby fund for response, relief and

rehabilitation programs in areas affected by disasters and calamities occurring during the budget

year (and even in the prior year) in order to normalize the situation and living conditions in these

areas as quickly as possible. The QRF allocation is lodged under the budgets of the agencies

enumerated below:

Purpose

Personal

Services

Maintenance and

Other Operating

Expenses (MOOE)

Capital

Outlays

TOTAL

1. Aid relief and Rehabilitation

Services to Communities/Areas

Affected by Calamities, including

Training of Personnel, and Other

Pre-disaster Activities

0.00 2,650,000,000 0.00 P2,650,000,000

2. Repair and Reconstruction of

Permanent Structures including,

Capital Expenditures for Pre-

disaster Operations,

Rehabilitation and other Related

Activities

0.00 800,000,000 4,050,000,000 P4,850,000,000

TOTAL 0.00 3,450,000,000 4,050,000,000 P7,500,000,000

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Table 9. Quick Response Fund Allocation by Agency

Agency Amount

1. DSWD- Office of the Secretary (OSEC) P662,500,000.00

2. DND - OCD 530,000,000.00

3. DND - OSEC 352,500,000.00

4. DPWH - OSEC 600,000,000.00

5. DepEd - OSEC 550,000,000.00

6. DA - OSEC 500,000,000.00

7. DA-National Irrigation Administration (NIA) 500,000,000.00

TOTAL P3,695,000,000.00

Source: GAA, FY 2013

One significant difference between the Calamity Fund and the QRF is that the QRF may be

used or released without the NDRMMC’s endorsement or the President’s approval. But when these

agencies’ QRF get depleted, they must request DBM for replenishment and seek the approval of the

President.

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II. AN OVERVIEW OF THE YOLANDA DISASTER

AND GOVERNMENT EFFORTS IN ITS AFTERMATH

Before the Storm

Two days before the fateful day when super typhoon Yolanda

(international name: Haiyan) made its first landfall in the

Philippines, both thePhilippine Atmospheric, Geophysical and

Astronomical Services Administration (PAGASA) and the

NDRRMC have already issued warnings and advisories on its

unusual strength and potential dangers. PAGASA had tracked

Yolanda’s path for days and raised storm signal warnings in

several areas in the Visayas, Mindanao and even in Luzon.

On the other hand, the NDRRMC, through the DILG, had directed

all mayors and governors in the Bicol Region, Eastern and Western

Visayas, and Region IV-B to activate their local DRRMCs,

monitor the situation in their areas of responsibility, make the

necessary precautionary measures and warn the communities

through the local media, especially the local radio station, about

the imminent danger posed by the typhoon. The NDRRMC

emphasized proactive actions, that is, evacuation instead of rescue

operations, and its ultimate aim of zero casualties.

Other government agencies have also mobilized their resources as

well as their regional and field offices in preparation for the

typhoon:

DOH prepositioned P350,885,321 worth of assorted drugs,

medicines, medical supplies, cot beds, and other essential

material;

DSWD prepositioned P178.383 million worth of goods or

89,260 food packs; coordinated with several LGUs in the

pre-emptive evacuation of their constituents to identified

evacuation centers; and started repacking operations in the

National Relief Operations Center (NROC) in Pasay;

Around 4,500 Armed Forces of the Philippines (AFP)

troops from various units in Leyte and Samar were placed

on red alert; three C-130 Air Force cargo planes and 32

military helicopters and planes were on standby, along with

20 navy ships;

In Region VIII, more than 6,453 policemen and support

units were placed on red alert, with five trucks and six

watercraft available for their eventual use; and

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Some 1,022 fire trucks of the Bureau of Fire Protection and

local governments had been put on heightened alert and 36

ambulances and 22 rubber boats were on standby.

The catastrophic

typhoon

Despite all the warnings, preparations and precautionary measures

undertaken before Yolanda’s landfall, no one had foreseen the

ferocity and magnitude of its destruction. Yolanda definitely lived

up to its billing as the strongest typhoon to ever make landfall in

recorded history. It is also the most devastating tropical cyclone

that struck the Philippines in recent memory.

The Category 5 typhoon made its first landfall over Guiuan,

Eastern Samar in the early morning of November 8, 2013 and

wreaked havoc, primarily on the Visayas region, until its exit from

the Philippine area of responsibility the following day.

Weather officials said Yolanda had sustained wind speeds

exceeding 185 kph when it made landfall. The strong winds ripped

off the roofs of thousands houses and knocked down shanties,

trees, power and telephone lines and cell towers. Storm surge

waves as high as 6 to 7 meters or a two-storey high building, were

also seen, claiming thousands of lives and destroying millions

worth of property.

The Aftermath

Eight months removed from Yolanda’s landfall, the hardest hit

areas in Eastern Visayas are still struggling to get back on their feet

again. The typhoon has undoubtedly left a deep and massive crater-

size physical and socio-economic destruction as well as untold

emotional trauma among the people.

According to an April 17, 2014 NDRRMC update, more than 3.4

million families or 16 million people, spread across 12,139

barangays in 44 provinces, 591 municipalities and 57 cities of

Regions IV-A, IV-B, V, VI, VII, VIII, X and XI and CARAGA

have been affected by Yolanda. A total of 4 million people have

also been displaced by the typhoon.

Yolanda’s death toll has reached 6,300 as of 17 April 2014, while

the number of injured stood at 28,689 and 1,061 are still missing

(Table 10).

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In terms of economic damages, NDRRMC has pegged the total

losses at almost P89.6 billion, with P9.5 billion for infrastructures

and P21.8 billion for the productive sectors (agriculture,

manufacturing, etc.) in Regions IV-A, IV-B, V, VI, VII, VIII and

CARAGA.

Table 10. Effects of Typhoon Yolanda in the Philippines

CASUALTIES

Region Dead Injured Missing

CALABARZON (IV-A) 3 4 0

MIMAROPA (IV-B) 19 61 24

Bicol Region (V) 6 21 0

Western Visayas (VI) 294 2,068 27

Central Visayas (VII) 74 348 5

Eastern Visayas (VIII) 5,902 26,186 1,005

Zamboanga Peninsula

(IX)

1 1 0

CARAGA (XIII) 1 0 0

Total 6,300 28,689 1,061

DAMAGES

Sector Amount

in PH₱ in US$

Infrastructure

Productive

Social

Cross-sectoral

9,584,596,305.69

21,833,622,975.09

55,110,825,740.69

3,069,023,613.41

216,210,158.03

491,416,227.21

1,240,396,708.10

69,075,480.83

Total 89,598,068,634.88 2,017,098,574.17

SOURCE: Data gathered from the last update by NDRRMC as of April 17, 2014.[2]

Exchange rate as of 17 April 2014, P44.43=$1

Government

Response Post-

Yolanda

The scale and magnitude of Yolanda’s destruction satisfied the criteria

or condition required for declaration of a state of calamity under

NDCC Memo Order no. 04 series of 1998 dated March 4, 1998. Thus

on November 11, 2013, President Aquino declared a State of National

Calamity through Proclamation No. 682 that aimed to hasten the

rescue, recovery, relief and rehabilitation efforts of the government

and the private sector, including international humanitarian aid.

Government agencies and LGUs immediately mobilized their own

resources and facilities for the massive rescue, recovery, relief and

rehabilitation operations.

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To facilitate the government’s disaster response, the Government

Procurement Policy Board (GPPB) approved GPPB Resolution No.

34-2013 on November 14, 2013 which: 1) reiterated that GPPB

approval is not necessary for government contracts of less than P500

million; 2) granted the authority to all concerned government entities

to procure goods and infrastructure projects through Negotiated

Procurement for contracts with Approved Budget for the Contract of at

least P500 million, for the purpose of rescue, recovery, relief and/or

rehabilitation during the State of National Calamity; and 3) required all

concerned government agencies to submit a list of transactions covered

by said authority at the end of every month.

Within a week after the onslaught of Yolanda, the NDRRMC reported

in its Nov. 15, 2013 bulletin the following concerted actions of some

key government agencies:

a. National Disaster

Risk Reduction

and Management

Council

(NDRRMC)

Assessed needs and damages at all levels

Drafted Memorandum Order No. 60 wherein the

Department of Finance (DOF) Secretary is designated as

the overall coordinator for the preparation of all relief

packs/goods prior to their distribution to the affected

localities; the Director General of the Technical Education

Skills Development Authority (TESDA) is designated as

co-coordinator; and the Secretary of Department of

Transportation and Communications (DOTC) is designated

as coordinator for all transportation and other logistical

needs in connection with the distribution of relief

packs/goods. All other departments, agencies, bureaus, and

offices of the Government are ordered to coordinate with

the said officials on any matter related to the relief and

recovery efforts on the affected areas.

Activated a “One-Stop Shop” on November 12, 2013, to

facilitate the acceptance of the influx of donations from the

international community (countries and organizations) after

the declaration of national state of calamity.

b. Department of

Social Welfare

and Development

(DSWD)

Mobilized 2,238 volunteers at NROC in repacking family

food packs as of 14 November 2013.

Airlifted 540 family food packs to Tacloban City on board a

C130 of the AFP on November 9, 2013.

Prepositioned P206.58 million worth of emergency relief

resources consisting of standby funds (P66.18 million);

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115,448 food packs (P31.06 million) and other food and

non-food items (P109.33 million) readily available for

augmentation.

Established Donations’ Desks at national and regional

levels.

Established partnership with Corporate Social Responsibility

arms of private companies (i.e. 7-Eleven, LBC, PAL

Foundation, etc.) as drop-off points for donations in-kind.

Facilitated foreign donations under Presidential

Memorandum Order (PMO) 36.

c. Department of

Public Works and

Highways

(DPWH)

Road Clearing Operation Teams cleared roads along

national highways temporarily obscured/disrupted.

Prepositioned heavy equipment in strategic areas for

possible clearing operations.

Deployed DRRM Teams and maintenance point persons at

strategic locations, particularly identified road sections

prone to landslides and flooding.

d. Department of

Health (DOH)

Provided medical assistance worth P1,157,504.95 in the

form of medicines, drugs, surgical instruments and financial

assistance to different hospitals and health offices in the

region (Center for Health Development or CHD IV-B).

Assigned Rapid Assessment Teams and Surveillance Teams

in six provinces; Stationed medical and surgical teams at

Bicol Regional Training and Teaching Hospital (BRTTH)

and Bicol Medical Center; assigned four medical teams for

evacuation centers.

e. Armed Forces of

the Philippines

(AFP)

Provided logistical support and manpower to haul and

preposition relief items.

Prepositioned Disaster Response Tactical Group and

response equipment.

Deployed servicemen and trained volunteers to augment for

possible evacuation and rescue operations.

f. Philippine

National Police

(PNP)

Activated Disaster Incident Management Task Groups and

Regional Provincial/City/Municipal Tactical Operations

Centers to provide security assistance in the communities

vacated by residents and in evacuation centers; and in the

delivery, packing and distribution of relief goods to the

affected areas.

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Assisted in the transportation of 325 families from Aklan;

3,195 families from Capiz; 405 from Iloilo; 32 from Iloilo

City; and 598 from Negros Occidental during the conduct of

pre-emptive evacuation.

g. Department of

Agriculture (DA)

Conducted regular coordination with LGUs and other relief

agencies; undertake constant market monitoring; and opened

its warehouses for relief operations and palay procurement.

h. Department of

Transportation

and

Communications

(DOTC)

Ensured readiness of personnel and equipment at the

Mactan-Cebu International Airport Authority and Cebu

Ports Authority.

i. National Food

Authority (NFA)

Ensured availability of rice stockpile to support area of

responsibility for two weeks (NFA IV-A).

Activated and deployed data gathering teams, agency

coordinating teams and price monitoring teams (NFA IV-B).

j. Department of

Education

(DepEd)

All schools designated as evacuation sites and personnel to

assist in evacuation were on standby alert.

k. Department of

Labor and

Employment

(DOLE)

Allotted P2.5 million for emergency employment of workers

affected by the typhoon (Region VI).

l. Department of

Trade and

Industry (DTI)

Organized the Diskwento Caravan in Ormoc City, Leyte on

14 November 2013.

m. Department of

Foreign Affairs

(DFA)

Had set up a Coordinating Unit for typhoon Yolanda to

facilitate offers of aid coming from foreign governments,

sent either through the concerned Foreign Service Post or

their diplomatic missions in Manila, as well as compile all

information on international assistance. The Coordinating

Unit provided required information or directed queries to

the concerned action office or government agency related

but not restricted to the following:

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o Landing permits of aircrafts bringing in relief

goods and equipment;

o Entry of medical missions and search-and-rescue

teams;

o Donations, in cash or in-kind;

o Entry of goods, medicines and equipment; and

o Visa concerns for humanitarian workers.

The Foreign Aid

Transparency

Hub (FAiTH)

(Screen captured from

http://www.gov.ph/faith.)

In response to the worldwide appeal for humanitarian aid, funds

from different sources and all corners of the world started pouring

in for Yolanda victims and survivors. To track the status of foreign

aid coursed through government agencies like the DSWD and the

NDRRMC, President Aquino launched FAiTH on November 18,

2013, “an online portal of information on calamity aid and

assistance pledged or given by countries and intergovernmental

organizations, as well as donations coursed through the

Commission on Filipinos Overseas’ (CFO) Lingkod sa Kapwa

Pilipino (LINKAPIL) program.” It can be accessed through

http://www.gov.ph/faith.

Screen captured from http://www.gov.ph/faith.

As of August 19, 2014, the portal has recorded a total of

P71,010,446,819.82 or $1,626,032,076.66 of foreign aid pledges.

Of this amount, P44.2 billion or $1 billion are cash pledges, while

P26.9 billion or almost $615 million are non-cash pledges.

There are four government agencies (DSWD, OCD, DOH and the

CFO) who are contributing information on the donations

channelled through the DFA, which are uploaded to this website.

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FAiTH

“More than just a

repository of data, FAiTH is

our way of expressing

gratitude to all those who

have reached out to the

Filipino people at this

tragic time and…a

reaffirmation of our

administration’s

commitment to true public

service.”

Foreign government grants or donations are coursed through the

Philippine embassies that send Note Verbale to the DFA on the

pledges made by donor countries. Not all pledges materialized into

actual donations as others have remained as mere pledges. Only

donations received by government agencies are monitored by the

DOF; donations directly given to LGUs are not included. Pledges

of foreign aid coursed through nongovernment organizations

(NGOs), such as the Philippine National Red Cross (PNRC) or

other international aid agencies can also be recorded in the portal,

but cannot be tracked. Overseas and local donations wired directly

to NGOs, UN instrumentalities and private entities and

foundations are also not included in this portal.

At present, there is no single agency that is actually monitoring the

receipt and utilization of funds received as donation or grants for

calamity victims.

The FAiTH Task Force is composed of representatives from the

DBM, CFO, DOF, DOH, DFA, DSWD, NEDA, OCD, Office of

Presidential Spokesperson, Presidential Management Staff and the

Presidential Communications Development and Strategic Planning

Office. The COA has also agreed to provide advisory support to

this initiative.

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III. THE SPECIAL AUDIT OF RELIEF OPERATIONS FOR TYPHOON YOLANDA VICTIMS

COA Issuance

The purpose of an audit is to ensure transparency and

accountability in the use of resources. By the nature of the job

of auditors, they already face numerous significant challenges

as they perform their tasks. What more when they conduct a

disaster audit and they themselves are calamity victims?

In ensuring transparency, immediate reporting is necessary and

every transaction is recorded in a book of accounts open to

anyone’s scrutiny. In the name of accountability, documentary

requirements are necessary. Seeking approvals, testing the

accuracy of the inventory and observing procedural controls

are but some of the many mechanisms of accountability. But

how does one fully satisfy all of these in the midst of an

emergency?

Accountability controls and mechanisms ensure that resources

are used appropriately for valid purposes. Following a

catastrophic disaster, decision-makers face a tension between

the demand for rapid response and recovery assistance—

including assistance to victims—and at the same time,

implementing appropriate controls and accountability

mechanisms.

In the case of the COA, we have barely started with our project

on “Enhancing the Audit of Disaster Funds” when typhoon

Yolanda struck without sparing our own people and our

Regional Office in Tacloban. While we have started with the

development of the accounting guide, we have not exposed the

draft to disaster-related agencies and thus, we could not

immediately release the guidelines. However, we are ready to

conduct the audit, given our experience and learning developed

through the years especially during our active participation in

the INTOSAI Working group on Accountability and Audit of

Disaster Funds.

With the massive scale and urgency of the government’s

rescue, recovery, relief and rehabilitation efforts and the huge

amounts involved, the Commission on Audit immediately

responded and issued COA Resolution No. 2013-024 on

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November 20, 2013.The said resolution required the immediate

post-audit of the rescue, relief, recovery and rehabilitation

efforts and activities during the period of the State of National

Calamity.

Ocular inspection and

process documentation

From November 19-21, 2013, a Project Team, in coordination

with the officials of COA’s National Government Sector,

conducted an ocular inspection and process documentation of

the relief operations being implemented at that time in certain

service centers in Metro Manila for typhoon Yolanda survivors.

These activities resulted in the issuance of an unnumbered

memorandum dated November 26, 2013 which showed the

process flow of relief operations in service centers located in

the National Capital Region (NCR), for the information and

reference of the audit teams in the monitoring of relief

operations.

Development of a visual

presentation

To help COA auditors and partner organizations understand

each stage of the relief operations, the special project team

prepared a visual presentation on the process flow of the relief

operations, including the designated service centers for typhoon

survivors and other beneficiaries.

Data gathering on

actual grants and

donations for Yolanda

victims

One of the critical elements in the special audit of disaster aid

pertaining to typhoon Yolanda is the availability, reliability and

quality of financial information on disaster funds.

Accountability is enhanced when donors report their

contributions, and receipts and activities relating to disaster aid

are recorded in a standardized and transparent reporting format

to complete the picture of the receipt, implementation and

accounting of donor funds.

To facilitate the solicitation and consolidation of the necessary

information on aid inflow and distribution, the Project Team

sent a letter dated November 28, 2013 with an attached

template for completion to the following development partners

and/or donors:

- Asian Development Bank

- Australian Agency for International Development

(AusAID)

- Canadian International Development Agency (CIDA)

- European Union

- United Nations Development Programme (UNDP)

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- United States Agency for International Development

(USAID)

- World Bank

In response to the informal survey, the USAID has confirmed

that as of December 23, 2013, it has donated $20 million in

total, including administrative support costs, to the government

through DSWD and to different private and NGOs to finance

the logistics, relief commodities, shelter and settlements and

humanitarian coordination. In addition, $10,064,440.00 has

been released to the World Food Programme for Emergency

Food Assistance.

Also, the European Union has confirmed giving financial

contribution for a total of EUR 122,238,000 as of November

22, 2013. This amount was released to different private and

non-government agencies. A share of the financial contribution

was also given to the NDRRMC as well as in-kind donations.

Creation of Audit Teams

On November 21-22, 2013, the Project Manager initiated a

series of meetings and consultations with COA officials for the

creation of audit teams that will monitor DSWD relief

operations in NCR and Regions VI-VIII. These meetings and

consultations resulted in the issuance of the following office

orders:

COA Office Order Nos. 691 and 693 both dated

November 25, 2013, creating a steering committee,

secretariat and audit teams to conduct the monitoring

of DSWD relief operations in NCR and Regions VI-

VIII

COA Office Order Nos. 692 and 694 dated November

25 and November 26, 2013, respectively, directing

selected officials and employees of COA to travel to

Regions VI, VII and VIII to perform the following

tasks:

- Conduct a briefing to identify initial audit

areas, gather audit issues and ensure

uniformity of audit procedures;

- Mobilize and introduce the audit teams who

will conduct the special audit; and

- Coordinate with partner professional

organizations that will join the citizens’

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participatory audit and help ensure

immediate action on transactions intended

for the survivors of typhoon Yolanda.

- Conduct site visits and inspections to come up with an agreed audit plan.

Audit Instructions

Audit Scope

Audit Period

Focus Areas in Audit

Agencies Included in the Audit

The special audit covered relief operations during the State of

National Calamity, under Proclamation No. 682, s. 2013,

particularly in the Provinces of Samar, Leyte, Cebu, Iloilo,

Capiz, Aklan and Palawan.

The audit was undertaken during the period of the State of

National Calamity.

The audit teams were instructed to focus on these subjects:

Sources and receipt of foreign aid

Release of local funds by DBM, the Office of the

President, the NDRMMC and other agencies involved

Inter-agency transfer of funds

Procurement and logistics

Distribution of goods and services

The national agencies included in this Special Audit Report are

the following:

DSWD

DPWH

DOH

OCD

DILG

NFA

Difficulties in the Conduct of Audit

Existing processes for confirming that donations received are all

accounted for were insufficient. Given the many sources of

donations, majority of which were not coursed through

government agencies, there was no way to track the flow of aid.

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There are no means to analyze a disaster victim’s eligibility for

assistance as documentary requirements are not considered due to

the urgency of need. Given the long queues for food packs,

auditors could no longer require the presentation of eligibility

documents or even identification cards due to the massive

destruction that included loss of records and documents, not to

mention the condition of the victims themselves who had not eaten

for days.

While it is important to ensure that prices were fair and reasonable,

the extent of damage created by the super typhoon resulted to a

very high demand for basic relief goods like noodles, thereby

resulting to artificial price increases.

The challenge therefore lies in developing the blend of skills

necessary to assure that disaster funds are adequately protected

without preventing the speedy response or timely delivery of aid to

the victims.

Simultaneous observations of the processes in procurement,

repacking and distribution were carried out by deploying teams to

the different repacking centers and operation centers in the affected

areas nationwide. Auditors of disaster related agencies were

instructed to immediately conduct a post-audit of all disaster

related transactions given the nature of the relief goods, and the

relaxation of some controls during the state of calamity.

While the presence of our teams seemed to be unwelcome to the

various officers busy in attending to disaster response, they were

there in various warehouses with or without electricity, so as to

ensure that every cent spent in order to save lives is completely

protected. While there are social workers designed to cater to the

needs of the homeless, hungry and despondent, there are also

auditors out in the field to check on the conditions of the goods,

assess audit conditions and document every stage of the process

flow until the relief goods reach those who needed them most.

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WHAT WE FOUND

Unutilized/Low utilization of funds

The government and relief organizations need money before they

can operate and effectively respond to those in need. It is a fact,

however, that aid only starts to flow in, in times of disaster. While

the law has amply provided for much needed resources, we view it

with concern that calamity funds remain unutilized both at the

level of selected national and local government units.

Procedural lapses/

deficiencies in

accounting for receipt

and utilization of

funds

Procurement and

Contracting Issues

Documentation and

recording issues

Even in times of catastrophic disaster, one cannot discount the

significance of controls and other accountability mechanisms for

they ensure the proper use of much needed resources. However,

decision makers often find themselves trapped in a struggle

between implementing controls and accountability mechanisms

and the demand for rapid response and recovery assistance. On one

hand, our audit documented many examples wherein quick action

was not possible due to longstanding policies/procedures that

required extensive, time-consuming processes, delaying the

delivery of vital supplies and other assistance.

On the other hand, we also found examples where processes under

procurement and distribution of relief goods to disaster victims left

the government to possible abuse of expedited transactions. In the

case of DOH, the correctness of recorded issuances of goods and

equipment in the amount of P36,912,764.06 or 39% of the total

distributions/issuances of P93,620,188.54 could not be

substantiated because this was not confirmed to have been received

by the concerned Auditors of the DOH Regional Offices. We

observed that procurement contracts were not conducted through

public bidding due to the urgency of need and yet, significant

amount of items procured remained undistributed even months

after they were purchased.

In the case of DSWD Field Office (FO) VI, the system they

adopted in relief distribution did not provide daily and periodic

reporting on the results/status of its operations as well as

accounting of funds received and its utilization.

Lapses were noted in the documentation and recording of donated

cash/relief goods and movement of supplies from warehouses were

sometimes done without accompanying approved supporting

documents. There are discrepancies between accounting and

reporting of family food packs (FFPs) between warehouse

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Management of

Inventory, supplies

and warehousing,

issues

Loading, shipments

and logistics

management issues

Delays/non-delivery

of goods

personnel and DSWD employees. It is very difficult to establish

actual inventories given the following circumstances:

Drop-off points of shipment not indicated in the tally out

sheet (TOS) for FFP releases to DSWD FO VIII, hence port

of entry cannot be verified;

Requisition and Issue Slip (RIS) not attached to some TOS;

Standard DSWD forms not used to document movement of

goods for proper monitoring.

It should be noted that a reliable inventory is crucial in the

determination of the volume of relief goods to be ordered as well

as timeliness in placing orders. An accurate inventory also

contributes to a sound analysis of distribution of relief assistance

which eventually can guide critical decision making during disaster

response.

Most agency officials are too afraid to violate the law or at the

least incur the possibility of a certain transaction being disallowed.

A lot of the conditions created by the aftermath of the typhoon are

unexpected and therefore awaiting a new set of guidance. The

bureaucratic structure and reliance on written guide permeate the

difficult situation of being able to respond immediately. The nature

of relief goods, majority of which are perishable, the conditions of

the victims and the limitations where agents of the government

operate, double the difficulty of responding to a huge calamity

such as typhoon Yolanda. What is saddening is while there is an

increasing need for the government to spend its resources, which

are readily available, they can hardly trickle down to the

succeeding levels of government in order to reach the victims

because state actors are either too reluctant to act if there are no

rules or they insist on following longstanding procedures as if there

are no emergencies.

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RECOMMENDATIONS

Draft Program of Work

for the Efficient

Utilization of Funds

Revisit the Existing

Relief Operations

System and Adopt

Measures to Ensure

its Smooth Flow

Adhere to Existing

Procurement and

Contracting Process

Use the Fundamental

Documentation and

Recording Procedures

In view of the low utilization and unutilized funds, implementing

offices must come up with a program of work for the efficient

utilization of disaster funds. When activities among concerned

agencies are well coordinated and strategies in project

implementation are improved, disaster funds will immediately

cater to the purpose to which they are intended.

However, no matter how the government would want to expedite

the delivery of assistance to calamity victims, there are procedural

lapses that challenge the balance between responding to the

urgency of needs and adhering to the controls that are in place. To

address the identified gaps, the delivery, repacking and distribution

of goods must be synchronized in such a way that we respond to a

crisis situation in a timely manner without sacrificing the existing

procedural controls. To accomplish this, it is recommended that the

concerned agencies revisit the existing relief operations system and

adopt measures to ensure the smooth flow of procedures and

regular reporting to provide information to management and other

stakeholders for decision making and monitoring purposes.

Moreover, the agencies must establish an efficient feedback

mechanism that would pinpoint responsibility and enhance

accountability and transparency in the relief operation process.

In the procurement and contracting issues alone, the government

has relaxed its policies in response to the disaster for contracts

worth less than P500 million. Through GPPB Resolution No. 34-

2013, GPPPB approval is no longer necessary as long as concerned

agencies submit a list of transactions covered by the said authority

at the end of every month. Nevertheless, adherence to the

procurement and contracting process is still essential to ensure that

the goods and services contracted are in accordance with the

specifications intended for its purpose.

Furthermore, one crucial issue to address is the flaws in the

documentation and recording procedures. Albeit we are caught in

the middle of an emergency crisis, we cannot do away with the call

for accountability and transparency. Necessary controls must still

be in place to ease the process of monitoring, validation and

reconciliation procedures. The typical use of pre-numbered

receipts, inventory tags, requisition and issue slips are few of the

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Establish an Effective

Inventory Management

System

Improve the

Timeliness of the

Acquisition and

Distribution of Relief

Goods

fundamental control procedures that must remain enforced. Also,

making use of a pro-forma documentation to effectively monitor

the movement of goods from production stage up to the delivery of

goods to the affected areas will supplement these controls.

Requiring an explanation from concerned/responsible officials for

the variances and unreconciled balances is another factor that will

help ensure accountability.

With the flow of in-kind donations, proper inventory management

is indispensable in making sound analysis in the distribution of

relief goods. Management of inventory, supplies and warehousing

issues will immediately be addressed if an effective inventory

management system is established. For instance, separate

responsible person/s may be assigned to handle the receiving,

distribution and recording of goods to avoid incompatible duties

among accountable persons. Moreover, it would be helpful to

require the Accountant to record the unutilized in-kind donations.

Also, monitor and control stock movement by coursing all

donations through the inventory account and recording issuances

as they occur to facilitate timely consolidation and close

monitoring of the movements of inventories.

Lastly, the bulk of the issues encountered in our audit is the delay

and non-delivery of goods. It must be noted that loading and

shipment issues are not only related but also part and parcel of the

underlying cause of the delivery problems. Some have claimed that

the reasons behind these issues are the longstanding procedures

that must be followed prior to the execution of the delivery of

relief goods in the affected areas notwithstanding the fact that most

of the relief goods are of a perishable nature. To address these

issues, concerned agencies must improve the planning of their

disaster response activities giving due regard to foreseeable

disasters/calamities to come up with a policy or guideline on the

timely acquisition and distribution of food items, medicines and

the like which are perishable in nature.

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Endnotes 1 Section 3(h), PDRRM Act of 2010 (Republic Act No.10121) 2 Section 3(o), PDRRM Act of2010 (Republic Act No.10121) 3http://www.fao.org 4National Progress Report on the Implementation of the Hyogo Framework for Action (2009-2011) March 27,2011 5 Section 5, RA No. 10121 6 Section 10, RA No. 10121 7 Section 15, RA No. 10121 8 NDCC Memorandum No. 2, Series of 1999

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IV. HIGHLIGHTS OF AUDIT FINDINGS AND RECOMMENDATIONS PER AGENCY

VISION

We envision a society where the poor,

vulnerable and disadvantaged are

empowered for an improved quality of life.

Towards this end, DSWD will be the

world’s standard for the delivery of

coordinated social services and social

protection for poverty reduction by 2030.

MISSION

To develop, implement and coordinate

social protection and poverty reduction

solutions for and with the poor, vulnerable

and disadvantaged.

VALUES

Respect for Human Dignity

Integrity

Service Excellence

Reference: http://www.dswd.gov.ph/

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INTRODUCTION

The DSWD plays a vital role in the comprehensive NDRRMP crafted for the years 2011 to

2028 pursuant to the requirement of RA 10121. DSWD was tasked as the overall lead or focal

agency for Disaster Response. Under this thematic area, it is expected that, in times of disaster,

there is a well-established disaster operations. An adequate and prompt assessment of needs

and damages at all levels is necessary. There should also be an integrated and coordinated

search, rescue, and retrieval capacity. Temporary shelter and psychological needs of directly

and indirectly affected population should be adequately addressed. Also, basic social services

are expected to be provided to affected population (whether inside or outside evacuation

centers) and, a coordinated and integrated system for early recovery should be implemented.

As Vice-Chair for disaster response, the DSWD is tasked to provide continuous technical

assistance and resource augmentation to disaster-affected LGUs and through intermediaries,

such as support for food, non-food items, cash-for-work, financial aid to families and/or

individuals in crisis situation, shelter assistance (emergency or permanent shelter), livelihood

support, construction of bunkhouses, mobile kitchen, psychosocial interventions, counselling

and others.

In adherence to the mandate bestowed, the DSWD, in response to OP Memorandum

Circular No. 57 dated November 15, 2013, “Directing all Department Secretaries and Heads of

Agencies, Bureaus, or Office of the Government, including Government-Owned and

Controlled Corporations, and Authorizing and Encouraging LGUs, to mobilize their respective

employees in the Relief and Rehabilitation Efforts in Response to the Calamity Arising from

Typhoon Yolanda,” established 16 Relief Operation Centers in NCR and Regions VI, VII, and

VIII.

DRRM Fund

On the basis of the aforementioned issuances, various government agencies mobilized

their resources and employees to undertake massive recovery, relief and rehabilitation efforts

to assist the families and communities affected by typhoon Yolanda.A comparative data on

allotment and obligation for calendar years (CYs) 2012 and 2013 is presented below:

Table 11. Comparative allotment and obligation, DRRM Fund (in million P)

Year Allotment Obligation Balances

2012 2,088.061 1,801.174 286.887

2013 13,747.671 10,081.684 3,665.987

Part of the allotment and obligation in CY 2013 pertains to Yolanda Relief Operations

amounting to P5,404,510,106.25 and P4,996,422,499.24, respectively, details as shown below.

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Table 12. Summary of Fund Releases (in million P) for Yolanda Relief Operations

Allotment

and

Obligation

by Region

SARO Reference No. and Amount

B-13-01252

dated Nov.

14, 2013

BMB-B-13-

0025902

dated Dec. 27,

2013

B-13-01323

dated Dec.

27, 2013

BMB-B-13-

0011623

dated July

26, 2013

B-13-01324

dated Dec.

27, 2013*

B-13-

01355

dated

Dec. 27,

2013

Total

Allotment:

OSEC P1,569.713 1,766.360 953.490 4289.563

NCR 19.938 0.210 20.148

IV-A 5.000 5.000

IV-B 15.000 15.000

V 77.859 77.859

VI 130.870 384.020 0.418 515.308

VII 88.500 217.807 76.972 383.279

VIII 10.100 10.100

X 18.500 18.500

XI 42.754 42.754

XII 13.500 13.500

CARAGA 13.500 13.500

Total 2,005.234 602.037 76.972 0.418 1,766.360 953.490 5,404.511

Obligation:

OSEC 1,552.517 1,766.360 953.490 4,272.367

NCR 19.938 0.210 20.148

IV-A 5.000 5.000

IV-B 15.000 15.000

V 77.859 77.859

VI 130.870 0.418 131.288

VII 88.500 210.935 76.972 376.407

VIII 10.100 10.100

X 18.500 18.500

XI 42.754 42.754

XII 13.500 13.500

CARAGA 13.500 13.500

Total 1,988.038 211.145 76.972 0.418 1,766.360 953.490 4,996..423

Balance 17.196 390.892 0.00 0.00 0.00 0.00 408.088

In addition, the following tables show the cash (Table 13) and in-kind donations (Table 14)

which were received from local and foreign sources. The unutilized balance of the cash

donations is deposited to an authorized government depository bank.

Table 13. Summary of Receipt and Utilization of Cash Donations

Sources Receipt Utilization Balance

Cash Donations

Local P 70,923,065.05 P3,880,000.00 P 67,043,065.05

Foreign 669,254,686.47 -- 669,254,686.47*

Total P740,177,751.52 P 736,297,751.52

* Amount in dollar currency is $15,255,986.20

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Table 14. Summary of Receipt and Utilization/Distribution of In-Kind Donations as of December 17, 2013

Source Storage Particulars Remarks

Local Donations

Various DSWD-

OSEC

Food and Non-Food Transferred at NROC

Donors from

Region IV-A

JY & Sons,

Cupang

Warehouse,

Muntinlupa

City

Local donations of

food and Non-Food

Released 14 container vans to DSWD FO VI-

Iloilo City as of Jan. 2, 2014, except for used

clothing which were transferred to NROC; Only

12 container vans were noted “Received” as of

Jan. 21, 2013 by the Regional Field Office

Auditor No. VI

Donors from NCR DSWD -

NROC

Food and Non-Food Still at the DSWD-NCR storage, NROC Pasay

City

Foreign Donations

Government of

Qatar

World Citi

Colleges

Warehouse

80MT of medicines,

food, tents, blankets,

and clothes

Still stored at World Citi Colleges Warehouse

Embassy of the

Philippines in the

Kingdom of Thailand

JY and Sons

Compound

Mobile Meal

(ready-to-eat)

Released to DSWD FO VI. Part of the 14

container vans with only 12 containers vans noted

as “Received” as of Jan. 21, 2013 by the Regional

Field Office Auditor No. VI.

Myanmar Defense

Services, the

Republic of the

Union of Myanmar

JY and Sons

Compound

Food and medicines Released to DSWD FO VI. Part of the 14

container vans with only 12 containers vans noted

as “Received” as of Jan. 21, 2013.

Cargolux Airlines,

Luxembourg

Ninoy

Aquino

Stadium

10,840 kg. of charity

shipment (assorted

Non-Food Items

Shipped and distributed to Yolanda victims in

Tacloban City

Embassy of the

People's Republic

of Bangladesh

Manila, Philippines

Ninoy

Aquino

Stadium

Food, non-food,

drinking water,

toiletries

Shipped and distributed to Yolanda Victims at

Tacloban City

Mead Johnson

Nutrition

(Thailand) Inc.

NROC Enfagrow A+ 3

UHT RTD Vanilla

180 ml

Still at the DSWD-NROC storage

Ministerio de

Relaciones

Exteriores de

Panama, Republic

of Panama

NROC Life Straw Family Still at the DSWD-NROC storage

Hyogo Prefectural

Government, Japan

NROC Diapers, Milk

Bottles, Antiseptic

Tablets, Antiseptic

Cases, Emergency

Food

Still at the DSWD-NROC storage

Sanyo Electric

(HK) Ltd. - Sanyo

Energy (HK) Co.

NROC Solar Panels Still at the DSWD-NROC storage

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Table 15.Physical Outputs/Accomplishments

Particulars Amount/Units

Relief Operations for the procurement, Repacking of FFPs (with 3 kg/6kg

rice) distributed to 1,472,251 affected families and 918,261 displaced due to

Typhoon Yolanda as of Feb. 3, 2014

Region IV-B 21,925 FFPs

Region V 60,368

Region VI 821,855

Region VII 147,477

Region VIII 5,327,267

CARAGA 5,285

6,384,177 FFPs

Transitional shelters established

Region VI

Region VII

14 Units

140 Units

Cash-for-Work Region VIII (NDRRF) as of Feb 3, 2014 P 22,407,011

Rehabilitation and Recovery: a psychological sound safe, and secure

citizenry that is protected from the effects of disasters to restore to normal

functioning after each disaster at the calamity areas/FOs

No. of counselling and

psychosocial interventions

Work and Financial Plan for the Cash Donation

Core Shelter Assistance

Provision of Motorized Bancas

Provision of Family Kitchen Kits

Cash For Work

Livelihood Assistance

Purchase of Forklift

Supplementary Feeding

Provision of Pedicabs

Repair of Regional Rehab Center for the Youth

Payment for Satellite Internet Services

Provision of toys thru “Wish Upon a Star”

Provision of toys and art materials for play and art therapy for

child-victims

P 677,040,000

20,700,000

34,847,120

14,527,997

12,231,320

3,880,000

8,000,400

2,906,295

2,000,000

1,493,079

1,147,680

528,852

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OBSERVATIONS

Funding

Issues/

Constraints

1. Due to the urgency of need, the DSWD resorted to the

utilization of other available funds amounting to

P116,352,088.04 and P373,187,252.42 to purchase supplies for

the Yolanda Relief Operations in NCR and Region VI,

respectively.

Management commented that in the performance of its mandated

duty to provide augmentation to the affected population through the

LGUs, it had to act immediately to respond to the urgent

requirements of the calamity victims. Their experience from past

disasters indicated long delays in the actual release of Calamity

Funds or QRFs even if the Department immediately requested for

budget releases. Thus, it had to source from available allotments

(budget) to enable it to respond and carry out its mandated tasks

with dispatch. The amounts utilized were replaced upon receipt of

the SARO for typhoon Yolanda.

Low Utilization

of Cash

Donation

2. Cash donations as of December 31, 2013 amounting to

P736,297,751.52, which were received for Yolanda victims, in

addition to prior years’ donations of P45,714,339.19 or a total

amount of P782,012,090.71 remained unutilized and deposited

in DSWD bank accounts.

Management commented that to ensure proper utilization of cash

granted for various calamities, particularly for the typhoon

Yolanda victims, proper planning as to target location,

beneficiaries and their needs had been conducted for efficient

implementation that would meet specific targets and achieve

favorable outcomes. To date, total disbursements from the

approved Work and Financial Plan of P779,486,400.15 have

already reached P14,771,997.00 while the remaining balance of

P764,714,403.15 for other relevant components, part of which is to

provide core shelter, is being processed for release to areas

affected by typhoon Yolanda. These funds are intended for the

“early recovery programs” of the victims of Yolanda, such as Core

Shelters, Basic Infrastructures, and Cash-for-Work and

Supplemental Feeding. To date, 80% has been allotted to core

shelters but the Department is still waiting for the declaration of its

LGU partners if the proposed locations for the shelters are safe or

not.

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Management also proposed policy reforms on the use of donated

funds, particularly for core shelter assistance, which would allow

the DSWD to acquire resettlement lots to ensure the efficient

implementation of the program.

Delay and lack

of coordination

in the

distribution of

donated goods

Table 16

3. Shipment of 14 container vans of donated goods was received by

FO VI as of 30 January 2014 or approximately 28 days from

release at the J&Y Sons Cupang Warehouse through DSWD-

OSEC and distributed to various LGUs as of 7 March 2014.

Based on the report of releases from the J&Y Cupang Warehouse

prepared by the requesting office (Disaster Risk Reduction and

Response Operation Office or DRRROO), DSWD OSEC, as of January

02, 2014, there were 14 container vans shipped from Manila to Iloilo

Port for the DSWD FO VI as consignee. As of January 21, 2014, results

of validation by the audit team showed the following:

Date

Validated Particulars

No. of Container

Vans

1/3/14 Container Van unloaded at Iloilo Sports Complex Operations

Center 2 (unloaded on 1/7/14)

1

1/21/14 Actual number of container vans at the PPA International Port at

Loboc, Lapuz, Iloilo City

• 1 container van is being unloaded for the Province of Antique;

• 1 container van already issued to Aklan but the contents have

been partially unloaded.

7

1/21/14 Container vans not yet accounted because they were not at the

PPA port during the validation but are included in the Report on

Releases from J&Y Sons Cupang Warehouse prepared by the

DRRROO of DSWD-OSEC:

• Out of the six (6) container vans four (4) had already been

issued to the Provinces: (Iloilo-3 and Aklan-1)

• Two (2) container vans were not in the PPA Port, hence,

presumed not yet delivered.

6

Total container vans per DSWD-OSEC Report 14

Management commented that goods were already distributed to various

LGUs. As per Inventory Report dated January 30, 2014, only 14

container vans were received. Two container vans arrived in January

2014 and February 7, 2014, respectively. As of March 7, 2014, all 17

container vans were accounted for and their loads were distributed to

various LGUs.

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Procurement of

Supplies and

Contracting Issues

With the volume of goods procured that remained unpacked, the

movement/transfer to and from the different hubs and the eventual

shipments of these unpacked items to the calamity areas resulted in

unaccounted items at the Manila International Cargo Terminal (MICT)

and the spoilage and losses of supplies shipped through the barges as

reported by the recipient DSWD FOs, thus delaying immediate food

aid as the unpacked items had to be repacked prior to its distribution.

Likewise, the TOS used for the movement/transfer of unpacked

supplies had no acknowledgement receipt at the receiving end, as the

receiving copies of the TOS, which were hand-carried by the truck

driver, together with the unpacked goods, were no longer returned to

MICT.

Management commented that the unaccounted 128,000 tins of sardines

were reportedly delivered from MICT to Villamor Airbase repacking

center. The DRRROO will further validate the records to ascertain its

delivery to the Villamor Airbase Repacking Center and will submit a

report on this on April 30, 2014.

4. The procurement of water in NCR under various Purchase Orders

(POs) amounting to P69,296,400.00, intended for shipment to

Tacloban, has not served its purpose due to lack of transport

facilities.

Management commented that at the time the supply of bottled water

was ordered, the areas adversely affected by typhoon Yolanda did not

have safe, potable water supply yet. The three affected regions,

especially the Eastern Visayas, had no water for drinking, cooking and

even for basic sanitation and hygiene because its local water districts

were damaged by the storm surge. However, the shipment of the

bottled water was deferred because of the directive to prioritize

the production of FFPs and its subsequent shipment to the affected

areas. It was also recognized that bottled water was no longer an

urgent need at that time because water purification systems

were already being established in the affected areas.

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Hence, the DSWD management decided to process the

cancellation of the undelivered bottled water. The cancellation of

the order for 5,588,800 bottled water or a total of P39,121,600.00

(56.45%) of the total cost of the approved POs is already being

discussed with the suppliers.

Reporting issues

in Production of

FFPs

5. In NCR, the production of FFPs per hub, as reported in the status

of repacking and issuances of FFPs on various dates as of

November 30, 2013, was overstated by 91,947 FFPs, valued at

P33,299,525.00, as compared to the total production and releases

of FFPs per TOS. Thus, the reported production of FFPs

submitted to the DOF and the OP on December 2, 2013 is more

than the actual FFPs produced.

Management clarified that during this period, there were several

repacking centers being established with different personnel manning

the centers on a 24-hour rotation basis of two to three shifts per day.

Hence, the DRRROO cannot ascertain the accuracy of the reported

production data. Management requested for ample time to review and

double check any available data on the repacking centers until April

30, 2014 and the report together with the attachments submitted to

COA and ensure the use of existing DSWD recording, monitoring and

reporting system.

6. Procured supplies intended for relief operations have not been

fully delivered by the suppliers due to logistical gaps, such as lack

of storage facility while awaiting repacking and eventual

transport to affected areas and lack of delivery trucks.

Management commented that the Procurement Service diligently

coordinated with the suppliers and their operations groups, the

DRRROO, the FOs and all other units to resolve the situation. On

the undelivered supplies (rice and water) by suppliers, they will

consider a policy of “On-demand delivery/withdrawal from suppliers”

scheme or request for blanket authority for the DSWD to go into

“Ordering Agreement” or “On Demand procurement” for disaster

operations requirements to address the storage issues.

Delayed/Non-

Delivery of

Supplies

They commented further that while suppliers managed to deliver the

stocks of bottled water, delivering the same to the DSWD warehouses

at NCR or affected areas immediately was not possible due to: 1)

lack of storage space at NROC; 2) lack of delivery vehicles/trucks to

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Management of

inventories/

supplies and

warehousing

issues

transport these to all affected areas; and 3) congestion at the port of

Matnog, Sorsogon or even in some areas in Regions VI and VII as

cargo vessels could not move out of the ports due to long queues of

cargo trucks, passenger buses and private vehicles rushing to go to

the affected areas.

Also, the adjustment in the delivery schedule was made by the DSWD

or with their concurrence to avoid further incurrence of demurrage

charges of delivery trucks that cannot be unloaded immediately due to

lack of space.

7. The supplies amounting to P58,029,631.29, which were accepted

and delivered to NROC from December 26 to 31, 2013, were not

properly stored but were piled at the grounds of NROC for more

than a month, exposed to rain and direct sunlight. Exposure to

these elements may lead to spoilage/wastage and leave the goods

not fit for human consumption.

Management explained that the overflowing stocks at NROC can be

attributed to the logistical nightmare that the DSWD encountered

in the course of Special Operations Yolanda. The transportation of

the goods could not cope with the bulk or voluminous deliveries at

that time. Also, there were many players involved and key aspects

of disaster relief operations were beyond the control of DSWD.

In compliance to the audit recommendations, suppliers of canned

goods and 3-in-1 coffee were asked to deliver to various identified

ports.

8. Actual physical count of unpacked supplies on November 24, 2013

in NCR, prior to the deployment of monitoring teams, showed

135,540 items unaccounted to include shortage of almost 1,000

sacks of rice.

Management concurred with the findings on the unaccounted 1,000

sacks of rice, based on the actual physical inventory of the unpacked

rice, but requested further validation on these findings until April 30,

2014.

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Documentation

and recording

issues

According to Management, based on the monitoring conducted, the

DRRROO found out that the measuring device used for the repacking

of rice were of different sizes and types, such as pots and mayonnaise

jar, hence the possibility of disparity on the volume of rice packed in

the plastic bags.

9. Inefficient warehouse management and inadequate facilities to

store relief/donated items resulted in the difficulty of conducting

inventory and delayed shipments to intended beneficiaries.

Management commented that they plan to request the DBM to allow

them to utilize Calamity Funds for purposes of constructing or renting

warehouses for use during large-scale disaster operations. Currently,

DSWD is working out an agreement with the UN-World Food

Programme and the OCD for construction of island cluster warehouses

which will serve as storage warehouses and training centers for

Logistics and Warehouse Management in Clark Air Base (for Luzon),

Cebu (for the Visayas) and Davao (for Mindanao regions) to beef up

the capacity of DSWD as Vice-Chair of NDRRMC’s Disaster

Response.

10. In Region VI, deliveries of 43,541 sacks of rice amounting to

P58,780,350.00 purchased from the NFA and covered with

Warehouse Stock Issued (WSI) were not tracked to the issued POs,

which made verification and reconciliation processes difficult.

Management commented that to date, it had already forwarded the

WSI indicated in the PO and that they will submit a report on this

soon.

11. Lapses were noted in the documentation and recording of relief

goods as follows:

a. in- and out-bound of supplies from warehouses without duly

approved documents;

b. inaccurate inventory of supplies;

c. discrepancy between accounting and reporting of FFPs by the

personnel stationed at each warehouse vis-a-vis the reported FFPs

by DSWD personnel;

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d. inconsistencies in accomplishing the TOS and RIS which serve as

gate pass in the release of FFPs as follows:

Forms not pre-numbered in sequential order or not pre-

numbered at all;

At times not signed/approved by DSWD personnel;

The "Received by" portion was signed by truck drivers or

helpers of the trucking company hence, the receiver at

drop-off point/destination cannot be properly identified in

the absence of other receipt documents. The driver should

have signed only the “drivers” portion and the “receiving”

portion by the recipient;

Drop-off points of shipment not indicated in the TOS for

FFPs’ releases to DSWD FO VIII, hence, port of entry

cannot be verified;

RIS not attached to some TOS; and

Standard DSWD forms not used to document movement

of goods for proper monitoring. Instead, pro-forma forms

were created, such as the ones for International Container

Terminal Services Inc., which were used in the receipt of

FFPs from other hubs and stuffing of FFPs in the container

vans.

The lapses in the documentation and recording as well as warehouse

management were noted by the Management. They said that the

DRRROO will address the above-cited lapses in its Strategic Planning

Workshop scheduled by end of April or 1st week of May 2014. The

workshop will also enhance the skills and operational capabilities of

the DRRROO staff in DRRM.

Management also proposed and it was agreed that for large-scale relief

operations, the use of logbook for incoming and outgoing inventories

may be allowed. Thus, the logbook and releases of FFPs shall be the

basis in reporting.

12. Delayed and incomplete or non-submission of documentary

requirements of POs in DSWD-NCR and FO VII amounting to

P1,454,277,690.44 and P229,276,863.00, respectively, hindered the

timely review and evaluation of transactions for proper

determination, evaluation and communication to management for

appropriate action.

DSWD OSEC commented that to date, the DSWD Procurement

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Service was able to endorse to COA the related documents for the

goods procured in the total amount of P972,485,551.04. The

documents were sent in four (4) batches, received by the COA

Resident Auditor on the following dates:

21 Feb 2014 (Batch 1): P112,689,813.04

21 Feb 2014(Batch 2): P76,638,792.00

06 Mar 2014 (Batch 3): P147,048,256.00

03 Apr 2014 (Batch 4): P636,108,690.00

The submission of the documentary requirements was delayed because

they had to be collected from the different areas or receiving points,

arranged, and organized in such a way that each delivery receipt,

acceptance or acknowledgment receipt and the like are placed under

the correct PO with the corresponding RIS/PR to avoid confusion or

misinterpretation of the documentation.

On the other hand, DSWD FO VII commented that although the POs

were issued at the time of disaster without the necessary supporting

documents, they conscientiously complied with the POs and attached

them to the vouchers at the time of payment. Considering that the only

document are only BAC Resolution for the Emergency Purchase, the

quotation from the suppliers, Inspection Report, Delivery Receipts and

charge invoice/billing statements, they ensured that these documents

were at hand before the activities were done.

13. Damaged goods and dented canned goods in FO VII were excluded

from repacking and just set aside without a report made to

account for the same. Disposal was likewise not documented.

14. The system adopted by DSWD FO VI in its relief distribution

operations did not provide daily and periodic reporting on the

results/status of its operations as well as accounting of funds

received and its utilization given the huge funding, defeating the

purpose of pinpointing responsibility and promoting

accountability and transparency.

DSWD-FO VI Management commented that after the Yolanda

experience and upon the advice of the audit team, systems and

procedures were continuously enhanced to address the current

volume of goods received and released to victims. However, there is

a need to train all staff so that in massive calamities, there would be

a wider base of trained personnel who can be relied on.

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Loading/ shipment

and logistics

issues

15. In Regions VII and VIII, the contents of the FFPs were exposed to

risk of damage due to improper handling of the shipped goods,

which resulted in the spoilage of 7,527 FFPs with an approximate

cost of P2,784,900.00; and 19,172 canned goods, 81 packs of

noodles and 21 sacks of rice, in addition to the 76,300 assorted

canned goods that were transported via Isabel, Leyte, were no

longer fit for human consumption.

The following lapses were noted in Regions VII and VIII which

resulted in damage to FFPs and relief goods:

a. inadequate supervision and monitoring in the unloading of

goods from barge due to manpower constraint;

b. unavailability of empty container vans, trucks, cargo ships

and other logistics to transport the relief goods from port to

storage building;

c. absence of concrete guidelines and preparedness in

handling huge volume of relief/donated goods; and

d. use of dump trucks in transporting/loading/unloading of

relief goods, specifically in Region VII

Management explained that the issue of the damaged goods delivered

through Light Cargo Transport (LCT) Carmen was due to the barge

management/crew who failed to take good care of the loaded goods.

There were no pallets or adequate and proper tarps or covers to protect

the goods from seawater or rain while in transit from Cebu City to

Tacloban City. In addition, the boat was not allowed to dock

immediately at the Tacloban wharf when it arrived and there was no

proper coordination or information relayed to DSWD-FO VIII.

DSWD Management requested that they be authorized to use their

QRF-MOOE for the acquisition of equipment in order to address the

logistics issue, as well as the establishment of satellite warehouse and

logistics hubs in island clusters (Luzon, Visayas and Mindanao).

Distribution

Issue

16. In Region VI, out of the 112 LGUs served with FFPs, only 29 had

accomplished the Relief Distribution Sheet (RDS) hence, it cannot

be ascertained if the FFPs released were actually received by the

affected families.

DSWD Management requested COA to relax the documentation

requirements for FFPs, specifically those distributed through helicopter

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Other issues

drops. On the other hand, FO VI Management commented that as of

April 15, 2014, a total of 36 LGUs have submitted the required RDS

and they have continuously sent reminders to LGUs to submit RDS.

While the RDS has not been completely collected, the silence of the

victims is a good indication that they have received goods from the

DSWD.

17. Volunteers assigned relief operation center in NCR were not given

IDs or name tags for easy identification and to distinguish

volunteers from management personnel, or from those involved in

the relief operations, putting risk to security and internal control

on supplies and promoting the opportunity to commit fraud.

Management commented that the volunteers will be issued IDs to

identify them as volunteers that would deny their access to security-

controlled areas at NROC. They will be required to wear their IDs

while inside NROC premises. The DSWD personnel, on the other

hand, will be required to wear their office IDs and vests for proper

identification.

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RECOMMENDATIONS

Funding

Issues/

Constraints

Low Utilization

of Cash

Donation

Delay and lack

of coordination

in the

distribution of

donated goods

1. Ensure that the processing time in the DSWD and DBM

for the request and release, respectively, of funds for

disaster-related activities be further improved to better

serve the needs of affected families.

2. Ensure that the intended purpose/s for which the donated

funds were given be immediately served.

3. Instruct the Supply Unit to hasten the distribution of

donated goods, particularly if contents are food items

which are considered perishable; and obtain

documentation of the shipment as reference for proper

recording in the books.

4. Account for the 128,400 tins of sardines transferred to

NROC and Villamor Airbase including its existence and

whereabouts and, henceforth, be extra careful in the

preparation of the TOS for monitoring purposes.

5. Mobilize available logistics/assistance in future relief

operations by coordinating closely with the heads of

government agencies involved; and consider the required

FFP composition in the distribution of goods to repacking

centers to avoid movement or transfer of unpacked

supplies to and from other hubs and eventual shipment to

calamity areas.

6. Procure water from nearby provinces; consider the

establishment of a water purifying station; and pursue

with the suppliers the cancellation of undelivered bottled

water, if possible.

7. Explain the variance noted in the relief operations and

the review of the reports by a designated supervisor; and

use government pro-forma forms equivalent to those used

in the private sector for goods repacked in order to

effectively monitor the movement of goods from the

production stage up to the delivery of goods to the

affected areas.

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Procurement of

Supplies and

Contracting

Issues

Reporting issues

in Production of

FFPs

Delayed/Non-

Delivery of

Supplies

Management of

inventories/

supplies and

warehousing

issues

Documentation

and recording

issues

8. Make a full accounting of the undelivered supplies;

negotiate with the suppliers who have remaining

undelivered goods to deliver them directly to the affected

areas and submit an updated report for monitoring; and

explore the possibility of delivery on demand, particularly

bottled water.

9. Cause the immediate shipment and distribution of items

stored in the NROC warehouse, particularly those piled on

the ground to maximize the benefits that can be derived

there and prevent spoilage and/or wastage of government

funds due to exposure to the elements.

10. Ensure proper accounting of relief goods by maintaining

timely and systematic recording and monitoring of goods

received, produced and distributed at any given point in

time.

11. Strengthen and enhance the disaster preparedness of the

DRRROO and all staff involved in disaster operations

specifically in facilitating donations and warehouse

management.

12. Make proper representation with concerned government

agencies on the provision of adequate logistics and storage

facilities to avoid recurrence of undue delays in the conduct

of relief operations; enhance existing guidelines in the

storage of relief goods which shall provide for accountable,

transparent, efficient, economical and effective relief

operations; and consider the establishment of DSWD-NROC

FOs in each cluster region, preferably in places near

international airports, to replicate its function in the region

so that all donations, including the relief operations, will be

nearer to the calamity area.

13. Require the point person/procurement officer to indicate the

PO number in the WSI to facilitate cross-referencing and

verification of deliveries; submit the WSI immediately to the

Audit Team for inspection of the delivery; and henceforth,

ensure the proper accomplishment of the WSI by indicating

the PO number, partial or complete delivery of the

particular PO, and the printed name of the person who

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Distribution issue

received and inspected the delivered items to facilitate

validation and tracking of quantity of rice procured.

14. Improve the Warehousing Management System at NROC

by conducting seminars for concerned DSWD personnel and

regular review and updating of processes; all RIS and TOS

shall be duly signed and approved by DSWD

officials/employees at all times for control purposes. Due

diligence must be observed in the preparation of TOS/RIS

in order to minimize if not avoid discrepancies; and

government-prescribed forms equivalent to those used in

the private sector must be used for goods received for stock

purposes and loading of goods to container vans for

uniformity and to effectively monitor the movement of

goods from production stage up to the delivery of goods to

affected areas.

15. Submit to the Office of the Auditor the supporting

documents for POs amounting to P481,792,139.40 to

facilitate the complete review and analysis thereof and to

affirm the reliability of the management’s assertion on the

existence, validity, accuracy and completeness of related

transactions.

16. Ensure proper accounting for damaged relief goods

excluded from repacking as well as proper documentation

of their disposal through an RIS. Likewise, they should

return defective/damaged relief goods delivered by suppliers

immediately, noting such return in the sale invoice and

delivery receipts.

17. Revisit the existing relief operations system and adopt

measures to address the identified gaps to ensure the

smooth flow of procedures and regular reporting to provide

information to management and other stakeholders for

decision making and monitoring purposes, respectively;

and also ensure the efficient feedback mechanism that

would pinpoint responsibility and enhance accountability

and transparency of the relief operation process.

18. Provide safety measures and guidelines to ensure the

proper handling and delivery of consumable goods;

formulate an operation or contingency plan for the

immediate sourcing of mechanized equipment, manpower

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Other issues

and other logistics to undertake the proper handling and

storage in case of emergency and/or calamities; refrain

from using open barges or landing ship transport in

delivering perishable relief goods to calamity areas; and

deploy sufficient personnel to complement the size of

operations being conducted.

19. Require the immediate submission of RDS or its equivalent

document from the concerned LGUs as proof of receipt of

FFPs by the affected families.

20. Provide appropriate IDs to all volunteers for easy

identification and monitoring of relief-related operations.

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Mandate

The DPWH is mandated to undertake (a) the

planning of infrastructure, such as national

roads and bridges, flood control, water

resources projects and other public works, and

(b) the design, construction, and maintenance

of national roads and bridges, and major flood

control systems.

Functions

The DPWH functions as the engineering and

construction arm of the Government tasked to

continuously develop its technology for the

purpose of ensuring the safety of all

infrastructure facilities and securing for all

public works and highways the highest

efficiency and quality in construction.

DPWH is currently responsible for the

planning, design, construction and

maintenance of infrastructures, especially the

national highways, flood control and water

resources development system, and other

public works in accordance with national

development objectives.

Reference: http://www.dpwh.gov.ph/

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INTRODUCTION

As the engineering and construction arm of the government, the DPWH is tasked to

continuously develop its technology to ensure the safety of all infrastructure facilities and secure the

highest efficiency and quality in construction for all public works and highways.

Its role is magnified in times of disaster because of the undeniable effects of disasters on

infrastructures. Damaged infrastructures aggravate the rate of mortality, leaving people displaced

and homeless. It even hampers the flow of relief and emergency assistance because roads and

bridges become impassable.

In the four Priority Areas of the NDRRMP, there are two areas where the DPWH is identified as

a lead agency. One is Prevention and Mitigation, where the task involves Increased resilience of

Infrastructure System. The other priority area is the Rehabilitation and Recovery, where disaster and

climate change-resilient infrastructure constructed/reconstructed is named as the agency task. To

strengthen the DPWH disaster preparedness and response mechanism, the following activities were

proposed to be undertaken:

a. Preventive

Action Plans

Recover road-right of way of identified critical national

roads with primary focus on National Highway 1 that

serves as the vital link in the delivery of response/aid in the

areas affected by calamities;

Prepare new standard resilient design for roads and bridges

and other public facilities (hospitals, school buildings,

airports, seaports) to have a disaster and climate change

resilient infrastructures particularly against flooding

(storm surge), high tide and earthquake

Implement “Structural Resiliency Program” to ensure that

reconstruction of vital infrastructures are functional during

and after calamities

Continuous clearing of waterways and relocation of

informal settlers

Strict enforcement of water easement laws and will strictly

prohibit the reconstruction of structures (housing, etc.)

along critical areas

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Upgrade equipment used in clearing/recovery operations and

prepare contingency plans which includes the identification of the

mobilization sites for the equipment to ensure the timely delivery of

services

Coordinate with public utility companies to upgrade their design

standards of their structures (electrical and communications

posts/towers) which can be an obstructions during/after a disaster

and look into a possibility on a underground public utilities along

critical roads or main artery which serves as lifelines in the delivery

of response, recovery and aid.

Identify shelter centers in disaster prone

provinces/cities/municipalities.

b. Response and

Recovery/

Rehabilitation

Plans

Restore and improve facilities, livelihood and living conditions of

affected communities, and implement Resiliency Program in the

reconstruction of government Infrastructure

Close coordination with the Office of the Presidential Assistant for

Rehabilitation and Recovery (PARR), other government agencies,

NGOs and private sectors in the recovery/rehabilitation of vital

infrastructures including shelter (housing) of affected families

To assist in the site development and provide/improve access to

resettlement area

To review and develop a better road network plan and navigational

lanes in the affected areas

To identify the role of the DPWH in the NDRRMP, the following (Table 17) have been

undertaken in connection with the provision of needed assistance to victims of typhoon Yolanda to

address the primary concerns of affected areas:

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Table 17. Accomplishment on Typhoon Yolanda-Related Projects

DPWH Tasks Appropriations Activity Amount Physical

Outputs Remarks

Preparedness

and

Mitigation

Increased

resilience of

infrastructure

system.

-

-

-

-

-

Rehabilitation

and Recovery

Disaster and

climate

change-

resilient

infrastructure

constructed/

reconstructed

SARO No. A-13-

01250 dated Nov.

13, 2013

Supply and delivery of housing

material s (GI sheets) for use of

5,000 families affected by

typhoon Yolanda

43,200,000.00 Delivery of

housing materials

in Region VIII

SARO No. A-13-

01250 dated Nov.

13, 2013

Supply and delivery of hand

tools for use in areas affected

by typhoon Yolanda

2,892,500.00 Physical delivery

of hand tools

Paid as of

Dec. 31,

2013

SARO No. A-13-

01250 dated Nov.

13, 2013

Supply and delivery of basic

roofing materials (GI sheets,

ridge rolls, roof nails) for use in

school buildings Region VIII

11,283,505.00 Delivery of

roofing materials

in Reg. VIII

SARO No. A-13-

01250 dated Nov.

13, 2013

Supply and delivery of basic

roofing material (GI sheets,

metal roof, ridge roll) for use in

school buildings in Reg. VIII

37,915,926.60 Delivery of

roofing materials

in Reg. VIII

SARO No. BMB-A-

13-0025725 dated

Dec. 26, 2013

Supply and delivery of basic

roofing material (GI sheets,

ridge rolls, roofing nails) for

use in areas affected by typhoon

Yolanda

37,792,854.00

SARO No. BMB-A-

13-0025725 dated

Dec. 26, 2013

Supply and delivery of basic

roofing material (GI sheets,

ridge rolls, roofing nails) for use

in areas affected by typhoon

Yolanda Reg. VIII

50,757,516.00 -

Sub allotments were

issued to Regional

Offices and District

Engineering Offices

or DEOs (SARO

No. A-13-01250

dated Nov. 13,

2013)

Rehabilitation of bridges, roads,

and flood control structures;

construction

207,279,065.00 -

Sub allotments were

issued to Regional

Offices and DEOs –

Regions V, VII,

VIII, X, XI, and

XIII (SARO No. A-

13-01250 dated

Nov. 13, 2013)

Immediate clearing of all

national roads affected by super

typhoon Yolanda

77,230,000.00 National roads

passable within

four days after

Yolanda, while

clearing of initial

debris in about

2,541 kilometers

of national roads

in Reg. VIII are

almost fully

completed

Sub allotments were

issued to Regional

Construction of bunkhouses 196,464,199.45 143 bunkhouses

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Offices and DEOs

(SARO No. A-13-

01250 dated Nov.

13, 2013)

Sub-allotted to Reg.

Office No. VIII

(SARO No. A-13-

01250 dated Nov.

13, 2013)

Fabrication/installation of No

Build Zone Markers along

shorelines in Reg. VIII

39,104,000.00 -

Sub allotted to

Leyte 3rd DEO

Rehabilitation/restoration of

damaged DPWH Office

building, repair of road slip and

damaged slope protection

5,000,000.00 -

References:

1. Consolidated AAR for CY 2011

2. GAA, FY 2013 3. Primer on the National Disaster Risk Reduction and Management Plan (2011-2008)DPWH DO No. 69 dated December 11, 2010

Calamity Fund for CY 2012 and 2013 Disaster Related Rehabilitation Projects (DRRP)

In CY 2013, the DPWH received a total allotment of P2,731,228,915.00 for rehabilitation

purposes of public infrastructure damaged by various typhoons that struck the country. Of

this amount, P2,614,291,641.97 or at least 95.72% was obligated and utilized. The

remaining balance was P116,937,273.03 which is 4.28% of the total allotment received.

Of the total allotment, P600 million came from the QRF allocation of the DPWH under the

GAA for FY 2013 that was earmarked for the repair/rehabilitation of facilities damaged by

typhoon Yolanda that occurred on November 8, 2013. Utilization stood at P579 million

covering clearing operations of national roads, construction of bunkhouses as temporary

shelters, repair/rehabilitation/improvement of bridges, drainage system and flood control

structure, and supply and delivery of roofing materials for use in school buildings affected

by typhoon Yolanda. The remaining allotment of P2,131,228,915.00 was utilized for

rehabilitation/repair of infrastructure facilities and structures damaged by typhoon Pablo.

On the other hand, allotment for DPWH in CY 2012 taken from the Special Purpose Fund

2012 Current was P1,100,000,000.00 of which P1,099,928,386.38 or at least 99.99% was

utilized out of the total allotment. The amount was used to rehabilitate facilities damaged

by calamities that occurred during the year, including typhoon Pablo.

It is noted that there was a significant increase of allotment in CY 2013 by

P1,P631,228,915.00 that could be attributed to the magnitude or number of damaged

properties that need to be rehabilitated as strong typhoons occurred successively in 2012

and 2013.

The details of the allotment and utilization covering CYs 2013 and 2012 are presented as

follows (Table 18):

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Table 18. Calamity Fund Allotment and Utilization

CY SARO

No.

Date Amount Appro-

priation

source

Purpose Utilization % of

Utiliza-

tion

Balance % of

unused

balance

Remarks

2013 A-13-

01250

Nov.

13,

2013

600,000,000 FY 2013

GAA, RA

10352

To cover the

repair/rehab of

infrastructure

facilities

damaged by

calamities

579,000,000 96.50% 21,000,000 3.5% Rehabili-

tation

activities

A-13-

01198

Aug

13,

2013

1,410,447,915 FY 2012

Calamity

Fund, RA

10155 (Cont.

Approp)

To cover the

repair/rehabili

-tation of

various

infrastructure

projects

damaged by

typhoons. FY

2013, RA

10155

Continuing

Special

Purpose fund

2012

1,314,510,641.97 93.20% 95,937,273.03 6.8% Rehabili-

tation

activities

B-13-

00988

May

15,

2013

720,781,000 Calamity

Fund, FY

2012 GAA,

RA 10155

(Cont.

Approp)

To cover

augmentation

of QRF for the

replacement

of 1,082

classrooms in

500 public

schools in

Reg. X, XI

and XIII

which were

damaged by

typhoon Pablo

720,781,000 100% -0-

Rehabili-

tation

activities

Total 2,731,228,915 2,614,291,641.97 95.72% 116,937,273.03 4.28%

2012 BMB-

A-12-

001606

7

Aug.

13,

2012

550,000,000 FY 2012 RA

10155

Special

Purpose Fund

2012 Current

To cover the

immediate

repair/restorati

on of

infrastructure

facilities

affected by

recent

typhoons and

flash floods

549,929,226.38 99.99% 70,773.62 .01% Rehabili-

tation

activities

BMB-

A-12-

003031

1

Dec.

11,

2012

550,000,000 FY 2012 RA

10155

Special

Purpose Fund

2012 Current

To cover the

repair and

immediate

rehabilitation

of various

infrastructures

damaged by

typhoon Pablo

549,999,160 99.99% 840.00 .01% Rehabili-

tation

activities

Total 1,100,000,000 1,99,928,386.38 99.99% 71,613.62 .01%

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OBSERVATIONS

Low Utilization

1. Cash donation from a foreign source with peso equivalent of

P4,417,314.59 remained unutilized which defeated the purpose of

the donation; said amount is unrecognized in the books of accounts

of the Department at year-end.

Section 63 of PD 1445 states that “except as may otherwise be

specifically provided by law or competent authority, all moneys and

property officially received by a public officer in any capacity or upon

any occasion must be accounted for as government funds and

government property. Government property shall be taken up in the

books of the agency concerned at acquisition cost or an appraised

value.”

Donation is a benevolent act showing sympathy, sensitivity and

consideration to a group of people or sectors affected by disaster, may it

be man-made or natural calamities. The intention is always for

humanitarian consideration that varies from one donor to another

depending on the prevailing circumstances and extent of damage

sustained. It comes in the form of cash or in-kind.

On December 12, 2013, the DPWH received cash donation from Sambo

Engineering Corporation of South Korea amounting to US$99,980.00.

Said offer was relayed to the Secretary through an undated letter by the

president of the company. This amount was credited in an account

maintained by DPWH at the Philippine Veterans Bank with initial

deposit of US$100. As of December 31, 2013, the balance of the

account stood at US$100,086.43, inclusive of net interest income of

US$6.43, when the exchange rate of peso to dollar was P44.1350 or a

peso equivalent of P4,417,314.59.

There has been no single transaction ever made out of the fund, hence

remains unutilized as of this writing. According to Management no

disbursement shall be made until further instruction.

Considering the purpose of the cash donation which is intended for the

rehabilitation of the regions devastated by typhoon Yolanda, its non-

utilization defeated the purpose of the donation and the emergency

nature of the need to institute repair and recovery measures.

OBSERVATIONS

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Non-

recording

2. Donation in-kind of the total amount of P5,395,000.00 is likewise

not recorded resulting in understatement of the assets.

Table 19

Donor Item Quantity Unit Cost Total cost

Commission on

Elections

(COMELEC)

Generator

sets Kenbo

Model

150 P28,500.00 P4,275,000.00

Civic

Merchandising

Inc.

Portable

Light

Tower

Doosan

Model

2 560,000.00 1,120,000.00

Total 152 P5,395,000.00

Out of generosity, the COMELEC issued Resolution No. 9810 dated

November 11, 2013, authorizing the immediate release of 150 units of

KENBO KB 13 generator sets to the DPWH on November 12, 2013

costing P28,500.00 per unit. The equipment was acknowledged by the

OIC, Bureau of Equipment, DPWH-OSEC on November 12, 2013.

Immediately the same day, they were transported to Tacloban, Leyte

and Acknowledgement Receipt for Equipment was drawn with the

Regional Director, DPWH Region VIII as the recipient. Eventually, the

same items were distributed to various government offices in Leyte

such as DepEd, DEOs, Fiber Industry Development Authority (FIDA)

and several LGUs.

Meanwhile, Civic Merchandising Inc., a private business entity through

its President, Mr. Anthony L. Ngo, donated two units of brand new

Portable Light Tower at P560,000/unit, or a total amount of

P1,120,000.00 for use in rescue operations in Region VIII-Tacloban

City. The equipment was received by the OIC, Central Equipment and

Spare Parts Division of the DPWH-OSEC.

The above donations were specifically intended for affected families of

typhoon Yolanda in Regions IV-B, VI, VII and VIII. Both donations in

cash and in-kind were coursed through the DPWH-OSEC, thus,

recognition or accounting thereof must be effected in the books of

accounts. The acceptance by the DPWH officers signifies their

agreement to the conditions of the donation.

The financial statement as of December 31, 2013 did not show any

evidence of recognition of the receipt of cash and the 150 generator

sets, thereby understating the assets and accountability was not

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established.

RECOMMENDATIONS

1.1. Draw a Program of Work for the utilization of the

cash donation so that the typhoon victims can

immediately benefit from it.

1.2. Require the Accountant to recognize the peso

equivalent of the dollar denominated donation at year-

end.

2. Require the Accountant to recognize the

cost/appraised value of the 152 pieces of equipment

and credit the corresponding account to Income from

Grants and Donation to fully disclose all financial

information.

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VISION by 2030

A global leader for attaining better health

outcomes, competitive and responsive health

care system, and equitable health financing.

MISSION

To guarantee equitable, sustainable and quality

health for all Filipinos, especially the poor, and

to lead the quest for excellence in health.

MANDATE

To develop national plans, technical standards,

and guidelines on health

Reference: http://www.doh.gov.ph/

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INTRODUCTION

The DOH holds the overall technical authority on health as it is a national health

policymaker and regulatory institution. In an emergency, the health sector is always called and

relied upon to respond. It is expected to take the lead in dealing with disease outbreaks or

epidemics and oftentimes, to provide essential backup support during rescue operations.

In 1978, PD 1566 “Strengthening the Philippine Disaster Control Capability and

Establishing the National Program in Community Disaster Preparedness" paved the way for the

institutionalization of the disaster management structure from the national government down to

the barangay level. This law mandated the DOH to lead the provision of medical services in

collaboration with other stakeholders in the health sector. Its role in health emergency

management is to lead in health sector preparedness and response.

DOH Administrative Order No. 168, s. 2004 dated September 9, 2004 was issued to

define the rules of engagement, procedures, coordination and sharing of resources and

responsibilities and to include the varying levels of state of preparedness and the desired

response to emergencies and disasters in the health sector.

The DOH is also one of the member agencies of the NDRRMC and under the NDRRMP

it is involved in two of the four thematic areas of disaster: Disaster Response and Disaster

Rehabilitation and Recovery. It is expected to lead in the following outcomes under Disaster

Response: integrated and coordinated search, rescue and retrieval capacity; provision of basic

social services; and addressing the psychosocial needs of directly and indirectly affected

population. For Disaster Rehabilitation and Recovery, the DOH, together with the DSWD, is

also tasked to aid in the restoration of a psychologically sound, safe and secure citizenry that is

protected from the effects of disasters.

For CY 2013, the Department’s Health Emergency Preparedness and Response Program

was appropriated a total amount of P170,863,000. Additional funds from the 2013 Continuing

Appropriation of other DOH programs amounting to P254,777,450.28 were used as of

February 28, 2014 to fund emergency purchases due to typhoon Yolanda. The total fund out of

the 2013 appropriation is P425,640,450.28. The DOH also received donations from foreign and

local institutions and individuals. For the years 2004 to 2013, the DOH received a total

donation for the benefit of victims of calamities (typhoons, oil spills and conflicts, etc.) of

P96,282,691.59, of which P60,766,694.92 or 63% pertains to CY 2013. Of the donations

received in 2013, a total amount of P58,099,437.49 was specifically for typhoon Yolanda relief

assistance. It also received in CY 2013 in-kind donations amounting to P62,333,279.06.

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Table 20

Tasks

(Thematic Area)

CY 2013Fund Disbursements

As of 2/28/14

Physical Outputs

Sources Amount

Disaster Response

Lead agency for:

Integrated and coordinated SRR

capacity (with DND and DILG)

Basic social services provides to

affected population (whether inside

or outside evacuation centers)

Psychosocial needs of directly and

indirectly affected population

addressed.

Appropriation

/Allotment

Donation –

Cash

Total

Appropriation

/Donations

In-kind

Receipt

425,640,450.28

60,766,694.92

486,407,145.20

62,333,279.06

232,591,416.39

60,103,778.35

292,695,194.74

59,135,562.54

Emergency

Procurement of

various drugs and

medicines, medical

and dental laboratory

supplies, medical and

other equipment and

other supplies

Disaster Rehabilitation and Recovery

Lead agency for:

A psychologically sound, safe and

secure citizenry that is protected from

the effects of disasters is able to restore

to normal functional after each disaster

(with DSWD)

OBSERVATIONS

Receipt and utilization of funds

1. Cash donations amounting to P58,099,437.49 were received

and deposited in an authorized government depository

bank without a specific authority by law or by the

Permanent Committee; and the unutilized cash donations

of P13,243,547.81 or 23% of the donations received were

not remitted to the National Treasury, contrary to Section

6 of the GAA, FY 2013 and EO No. 338, s. 1996.

Section 6 of GAA, FY 2013 states that “Receipts from donations

shall be accounted for in the books of the donee-government

agency in accordance with pertinent accounting and auditing rules

and regulations. Such donations, whether in cash or in kind, shall

be deemed automatically appropriated for the purpose specified

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by the donor. The receipts from cash donations xxx shall be

deposited with the National Treasury and recorded as a Special

Account in the General Fund and shall be available to the

implementing agency concerned through a Special Budget

pursuant to Section 35, Chapter 5, Book VI of E.O. No. 292:

PROVIDED, That donations for specific purpose with a term not

exceeding one (1) year shall be treated as trust receipts in

accordance with Section 6 hereof.”

E.O. No. 338, s. 1996, requires all government offices and

agencies, unless otherwise specifically provided by law, to

immediately transfer all public monies deposited with depository

banks and other institutions to the Bureau of Treasury, regardless

of income source.

The agency received cash donations (foreign and local) for

Yolanda Relief Assistance amounting to P58,099,437.49 and

deposited the same to a bank account opened in 2004 without a

specific authority by law or by the Permanent Committee,

contrary to Section 6 of GAA, FY 2013 and E.O. No. 338, s.

1996. Foreign cash donations (from the Banks of Thailand and

Switzerland) were wired via bank-to-bank transfers to the DOH

bank account listed in Annex A of the DFA advisory to all foreign

posts dated November 15, 2013 with the subject “Guidelines on

Facilitating Offers of International Aid for Victims of Typhoon

Yolanda”. Prior to typhoon Yolanda, the agency received cash

donations or transfers and deposited the same to the said bank

account.

The cash donations were all duly receipted and deposited in the

agency’s authorized government depository bank and were all

accounted for in the books of accounts. With this amount, 23% or

P13,243,547.81 remained unutilized and not remitted to the

National Treasury as of December 31, 2013, as shown below:

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Receipt and

utilization of funds

Table 21

Management commented that the unutilized balance of

P13,243,547.81, including the cash donations received in January

and February 2014 from the Bank of Switzerland and Southeast

Asean Central Bank Research & Training Center amounting to

P2,463,095.28, were already utilized, leaving a balance of only

P670,983.09, which will be remitted to the National Treasury, as

required.

2. Donations or transfers of funds from government institutions

amounting to P56 million or 93% of the total donations of

P60,516,801.01 were not covered by memorandum of agreement

(MOA) or its equivalent, thus, making it difficult to determine

how the funds will be utilized and disposed of for liquidation,

reporting and audit purposes.

COA Circular No. 94-013 dated December 13, 1994 provides that,

fund transfers by the source agency to the implementing agency

shall be covered, among others, by MOA or its equivalent. The

MOA spells out the purpose of the fund and how this will be

utilized and disposed of for liquidation, reporting and audit

purposes.

Total Cash Donations received in 2013

P58,099,437.49

Less: Procurement of various drugs and

medicines, medical and dental

laboratory supplies, medical and

other equipment, and other

supplies as of 12/31/13

P44,855,889.68

Unutilized balance P13,243,547.81

Table 22

Government Agency Amount

Philippine Charity Sweepstakes

Office (PCSO)

P50,000,000.00

Bangko Sentral ng Pilipinas (BSP) 3,500,000.00

GSIS 2,500,000.00

Total P56,000,000.00

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Procurement of

goods

The details of Subsidiary Ledger-Land Bank of the Philippines

Acct. No.1432-1046-01 pertaining to grants and donations received

from different donors for victims of typhoon Yolanda revealed that

the grants and donations that the DOH received, particularly from

government institutions, amounting to P56 million or 93% of the

donations received, were not covered by MOA or its equivalent.

The absence of a MOA resulted in the difficulty of determining how

the funds will be utilized and disposed of for liquidation, reporting

and audit purposes.

Management commented that due to the nature of transaction,

particularly for calamities, checks are forwarded to the Cashier’s

Office for acknowledgment and other supporting documents to

come later. They already wrote to the PCSO, GSIS and BSP for the

submission of MOA or its equivalent but they have not yet

complied as of this date.

3. The procurement of goods (various drugs and medicines,

medical and dental laboratory supplies, medical and other

equipment, and other supplies) started within three (3) days

from the date of declaration of national calamity on November

11, 2013. The DOH conducted emergency purchases of various

drugs and medicines, medical equipment/supplies and other

equipment/commodities by utilizing the total amount of

P56,094,889.68 from the cash donation received for the purpose.

Requests for Quotations from known suppliers were made and

after evaluating the same, Notices to Deliver were issued by the

Central Office Bids and Awards Committee (COBAC)

Chairperson directing the suppliers to deliver the goods within

seven (7) days directly to CHDs and LGUs, in the case of

equipment, and to the DOH-Central Office, in the case of drugs

and medicines, medical and dental laboratory supplies, and

other supplies.

Receipt,

distribution and

Management commented that a memorandum was already issued to

concerned offices to secure a Certificate of Availability of Funds

(CAF) prior to the issuance to the contractor of Notices to Deliver,

the equivalent document of a Purchase Order used for emergency

purchases for typhoon Yolanda.

4. Emergency purchases out of the regular fund for Yolanda Relief

Assistance amounting to P89,264,881.70 were not coordinated

with the Budget Office such that obligations thereof were not

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utilization of goods

Accounting

/Recording

made that year, contrary to PD 1445, hence, considered as

unbooked obligations and therefore not valid expenditures.

PD 1445 provides the following with regard to disbursement of

government funds:

Section 85 - No contract involving the expenditure of

public funds shall be entered into unless there is an

appropriation therefor, the unexpended balance of which,

free of other obligations, is sufficient to cover the

proposed expenditure.

Section 86 –xxx No contract involving the expenditure of

public funds by any government agency shall be entered

into or authorized unless the proper accounting official of

the agency concerned shall have certified to the officer

entering into the obligation that funds have been duly

appropriated for the purpose and that the amount

necessary to cover the proposed contract for the current

fiscal year is available for expenditure on account thereof

xxx

Section 87 - Any contract entered into contrary to the

requirements of the immediately preceding sections shall

be void, and the officer or officers entering into the

contract shall be liable to the government or other

contracting party for any consequent damage to the same

extent as if the transaction had been wholly between

private parties.

Audit results showed that emergency purchases for Yolanda Relief

Assistance, out of the regular fund amounting to P89,264,881.70,

were not coordinated with the Budget Office such that obligations

thereof were not made that year, contrary to PD 1445, hence,

considered as not valid or void. The obligations were made only in

2014 chargeable against the Continuing Appropriation.

5. The delivery of procured goods was done by the respective

suppliers within the schedule required by the COBAC

Chairperson. These deliveries as well as the goods donated were

duly receipted, inspected and accepted by authorized DOH

personnel before their distribution to intended destinations.

Upon receipt, all purchased drugs and medicines, medical and

dental laboratory supplies, together with the in-kind donations, were

immediately distributed by the DOH Materials Management

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Division (MMD) to concerned CHDs, hospitals, provincial and

municipal health centers, or other health facilities within the

provinces that are accessible to transport wherein the DOH Medical

Personnel and Response Teams, consisting of doctors, nurses and

psychiatric nurses, were deployed. The distribution was done

through the following modes:

Via freight forwarders;

Thru four Mobile Bus Clinics bound for Tacloban City

By transport with the Medical and Dental Teams deployed

in the affected areas and provinces

The utilization of the purchased and in-kind donations of drugs and

medicines, medical and dental laboratory supplies were at the

disposal of the DOH Medical Personnel and Response Teams

deployed in the different health facilities in the affected areas.

Cadaver bags, totaling 27,808 pieces, were not distributed on

time, thus, retrieved dead bodies were exposed for a long time,

creating additional hazard to the health of the victims and

disaster responders. A total of 24,300cadaver bags remained

unutilized as of December 31, 2013.

The DOH purchased 7,750 pieces of cadaver bags in February 2012

and distributed the same as follows: (2,625 pieces to 13 CHDs in

April 2012 or 202 pieces per CHD; and 1,517 pieces to CHD

Regional Office XI, XII and XIII in December 2012) with a balance

on stock of 3,608 prior to typhoon Yolanda. Of the said balance,

3,508 pieces were distributed to CHD Regional Office VIII on

November 12, 2013 or after typhoon Yolanda. In addition, 4,400

pieces were purchased on emergency in December 2013. It also

received a donation of 19,900 pieces in the last week of November

2013 and first week of December 2013. The 4,400 and 19,900

pieces of cadaver bags or a total of 24,300 remained unissued and

still at the DOH-Central Office warehouse as of January 31, 2014.

6. The receipts and issuances of drugs and medicines, medical

supplies and other commodities from the different donors

amounting to at least P251,284.00 were not recorded in the

books. Further, various in-kind donations were recorded in the

books arbitrarily and not at their fair-value, thus, the receipts

and issuances were not recorded correctly.

Paragraph 2, Section 12 of RA 10155 states that “Receipts from

donations shall be accounted for in the books of the donee-

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government agency in accordance with pertinent accounting and

auditing rules and regulations. Such donations, whether in cash or in

kind, shall be deemed automatically appropriated for the purpose

specified by the donor xxx”

Section 62, Volume II of the NGAS Manual provides that “the

Report of Supplies and Materials Issued (RSMI) shall be prepared

by the Supply Officer and shall be used by the Accounting Unit as a

basis in preparing the Journal Entry Voucher (JEV) to record the

supplies and materials issued.”

Section 63 of PD 1445 provides “Except as may otherwise be

specifically provided by law or competent authority all moneys and

property officially received by a public officer in any capacity or

upon any occasion must be accounted for as government funds and

government property. Government property shall be taken up in the

books of the agency concerned at acquisition cost or an appraised

value.”

Based on the report submitted by the DOH-MMD as of December

31, 2013, the total in-kind donations received and distributed

amounted to P62,333,279.06 and P59,135,562.54, respectively.

However, verification of the entries made in the respective

Subsidiary Ledger accounts for these particular transactions

revealed that there are receipts and issuances included in the report

but not recorded in the books of accounts. Further, it was noted that

there are drugs and medicines and medical supplies with no

appraised value, hence, not properly accounted for in the books.

Further, the DOH-MMD report of in-kind donations showed that

these were mostly without cost or value. For purposes of recording,

however, the Accounting recorded these donations (receipts and

issuances) not at their fair value. For example, the Anti-Tetanus

Serum 1500 IU/0.7 ml ampule and Tetanus Toxoid 5 ml (40IU/0.5

ml) ampule were recorded at P1.00 only. The Family Emergency

Medicine Kit was recorded at P0.28. Furthermore, donated tents

were recorded at P1.00 each only. This is not in conformity with

Section 63 of PD 1445 which requires government property to be

taken up in the books of the agency concerned at acquisition cost or

at appraised value.

An inquiry made with the Accounting Office revealed that the

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unrecorded receipts and issuances of the said donations and the

recording of donations without cost not at its fair value at the time

of the acquisition were due to delayed/non-submission by the DOH-

MMD to the Accounting Office of the required RSMI and the

assessed value for goods donated without cost. These resulted in net

understatement of the total Inventories account (for drugs and

medicines, medical and dental laboratory supplies) and Income

from Grants and Donations account by at least P251,284.00 and

receipts and donations not recorded correctly although the net effect

is zero.

7. The correctness of recorded issuances of goods and equipment

in the amount ofP36,912,764.06 or 39% of the total

distributions/issuances of P93,620,188.54could not be

substantiated because this was not confirmed to have been

received by the concerned Auditors of the DOH Regional

Offices.

Confirmation inquiries were sent to the Audit Team Leaders of the

DOH Regional Offices, particularly Samar Provinces, Leyte, Cebu,

Iloilo, Aklan and Palawan to obtain reasonable assurance that they

have received all the goods acquired through emergency

purchases/donations for the victims of typhoon Yolanda, and they

were properly accounted for and were recorded in their respective

books of accounts.

Results of the confirmation showed that their respective agencies

did not receive the various supplies and equipment amounting to

P36,912,764.06, representing 39% of the total goods/equipment

issued and distributed amounting to P93,620,188.54, hence, were

not accounted for. Moreover, the recipients of the goods may not be

authorized considering that their signatures are not legible.

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RECOMMENDATIONS

Receipt and

utilization of

funds

1. Seek authority from the Permanent Committee or to request

inclusion in the GAA of a special provision for DOH’s

maintenance of a trust bank account for donations and utilization

thereof; and remit the unutilized balance to the National Treasury,

as required in Section 6 of GAA, FY 2013 and E.O. No. 338, s.

1996.

2. Require a MOA or its equivalent for donations made by

government agencies as basis of recording and submit a copy

thereof for audit purposes.

Procurement of

goods

3. Require the concerned offices to secure a CAF or its equivalent

prior to entering into a contract, even in an emergency situation.

Receipt,

distribution and

utilization of

goods

Accounting

/Recording

4. Distribute the cadaver bags with dispatch in the future and ensure

that these are utilized in coordination with concerned LGUs.

5. Direct the DOH-MMD to appraise the value of the donated

goods/equipment with no cost, and prepare the RSMI and Invoice

Receipt for Property for the inventory items and equipment,

respectively, already issued and distributed, and submit the same

to the Accounting Section for recording; and

Require the Accountant to record the unutilized in-kind donations

amounting to P251,284.00 and monitor and control stock

movement by coursing all donations through the Inventory

account and recording issuances as they occur.

6. Require the concerned Accountants and Supply/Property Officers

of the DOH-OSEC and Regional Offices to immediately:

Account and confirm the receipt of all goods/equipment issued

and distributed by the Central Office to warrant proper

reconciliation and to ensure that such are fully accounted and

properly recorded in their books;

Require explanation from concerned/responsible officials for the

variances and unreconciled balances;

Submit to the Office of the Auditor the final Report on the Receipt

and Utilization of Donations/Emergency Purchases, for further

validation and evaluation; and

Require the list of authorized focal persons to receive the goods

delivered to LGUs with corresponding signature.

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Vision

A service oriented organization.

A prepared population.

A safe nation.

Mission

To administer a comprehensive national civil

defense and disaster risk reduction and

management program by providing leadership

in the continuous development of strategic and

systematic approaches as well as measures to

reduce the vulnerabilities and risks to hazards

and manage the consequences of disasters.

Functions

OCD acts as the implementing arm of the

NDRRMC and has the primary mission of

administering a comprehensive national civil

defense and disaster risk reduction and

management program. It provides leadership in

the continuous development of strategic and

systematic approaches and measures to reduce

the vulnerabilities and risks to hazards and

manage the consequences of disasters.

Office of the Civil Defense

Reference: http://www.ocd.gov.ph/

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INTRODUCTION

The Office of the Civil Defense plays a key role in the implementation of RA 10121 as the

administrator and secretariat of the NDRMMC. The OCD Administrator also serves as the

Council’s Executive Director.

One of OCD’s functions is the development of an NDRRMP in accordance with the

Framework formulated by the National Council and provide leadership in its implementation. The

Plan is cognizant of the development context of disasters and seeks to leverage on the Philippine

Development Plan 2011-2016, the national development roadmap of the country, which has

identified DRRM and Climate Change Adaptation (CCA) as major crosscutting concerns.

OCD’s main responsibility includes ensuring the implementation and monitoring of the

NDRRMP. Specifically, it is tasked to conduct periodic assessment and performance monitoring of

member-agencies of the NDRRMC and the RDRRMCs as indicated in the NDRRMP. It is also

responsible for ascertaining that the physical framework, social, economic and environmental plans

of communities, cities, municipalities and provinces are consistent with the NDRRMP. OCD is

also tasked to make sure that all DRR programs, projects and activities requiring regional and

international support shall be in accordance with duly established national policies and aligned with

international agreements. At the regional and local levels, the OCD needs to review and evaluate

the Local DRRM Plans (LDRRMPs) to facilitate the integration of DRR measures into the local

Comprehensive Development Plan (CDP) and the Comprehensive Land Use Plan (CLUP).

For the NDRMMP’s thematic area of disaster preparedness, Tables 23 and 24 present the

expected output and activities vis-a-vis the accomplishments of OCD.

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Table 23. Accomplishments under Outcome Number 8

Expected Output Activities Accomplishments

Outcome 8-Communities are equipped with necessary skills and capability to cope with the impact of

disasters

1. Increased

understanding and

application of risk

reduction measures

and better prepared

communities

1.1 Formulation of standard

programs of instruction, training

modules

1.2 Conduct of trainings and

simulation exercises on disaster

preparedness and response

a. National level

b. Local level

1.2 Conducted Nationwide Simultaneous

Earthquake Drill

a. GHQ, Camp Aguinaldo, March 2012

b. Pasig Central Elementary School,

June 2012

c. Brgy. Caniogan, Calumpit, Bulacan,

Sept. 24, 2012

d. Talisay and Lian, Batangas and

Brgy. Sabang, Puerto Galera, Dec. 3,

2012

2. DRRM is

mainstreamed and

taken into

consideration in

decision making

2.1 Customized capacity building

activities for disaster risk

managers and key decision

makers

a. National level

b. Local level

3. Sustained DRRM

education and

research through

permanent training

institutions

3.1 Establishment of DRRM Training

Institutes to conduct education,

training, research and publication

programs

4. Increased awareness

of students through

DRRM and Climate

proofing of

educational

materials and

equipment

4.1 Integrate DRRM and CCA school

curricula, textbooks and teachers’

guides and manuals

4.2 Conduct of DRRM and CCA

education and training for the

public and private sectors

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Table 24. Accomplishments under Outcome Number 10

Expected Outputs Activities Accomplishments

Outcome 10-Developed and implemented comprehensive national and local preparedness and response

policies, plans and systems

1. Enhanced preparedness

and response strategies,

including coordination

mechanisms and

infrastructure

1.1 Develop and/or enhance and simulate

scenario-based preparedness and response

plans

a. National level

b. Local level

2. Increased coordination

through the incident

command systems

2.1 Develop and/or enhance Incident

Command System coordination and

communication systems

2.2 Develop and/or enhance a standard

manual of operations for Operations

Center

a. National level

b. Local level

2.1 Conducted Command Post

Exercise on High Density

Population Gathering (Feast

of the Black Nazarene, Nov.

5-6, 2013)

3. Better prepared

citizenry

3.1 Develop and/or enhance guidelines for

emergency response teams

a. National level

b. Local level

4. Increased coordination,

complementation and

interoperability of work

in DRRM

4.1 Develop and/or enhance agreed protocols

for information gathering and reporting

4.2 Develop and/or enhance common and

integrated response assessment tools and

mechanisms (i.e. SOPs for deployment

for and coordination with rapid

assessment teams, SRR evaluation)

a. National level

b. Local level

5. Integrated operations

and essential services

ensured

5.1 Conduct an inventory of existing

resources and services

a. National level

b. Local level

It can be noted that the OCD has not accomplished much yet in the

area of Disaster Preparedness, of which it is the lead agency, as

evident in Table 24 per the CY 2012 Performance Review and

Assessment of the NDRRMP. This may be attributed to the following

factors:

The NDRRMF on which NDRRMP was based, was approved

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only on June 16, 2011;

Assessment of its CY 2013 accomplishments have not yet been

undertaken;

The frequent disasters (natural and man-made) which took place

in previous years have kept the agency and other members of the

National Council preoccupied attending to these various

emergencies.

The OCD does not yet have a relevant staffing pattern approved

by the DBM as required under Rule 7, Section 4 of the

Implementing Rules and Regulations of RA10121.

With the approval of RA 10121 on May 27, 2010, the powers and

functions of OCD had expanded, entailing the need to restructure the

current setup to cope with the requirements of the law.

Rule 7, Section 4 of the Implementing Rules and Regulations of RA

10121 provides that “The Office of Civil Defense, in coordination

with the DBM and Civil Service Commission [CSC], shall come up

with relevant staffing pattern within thirty (30) days from approval of

these Rules. The enhanced OCD organization shall be composed of

competent and qualified technical personnel of relevant offices as

may be deemed necessary to effectively carry out its functions and

duties prescribed herein, subject to the approval of the DBM and

existing civil service rules and regulations.”

In line with this, Memorandum Order No. 682 dated October 25, 2012

was issued which reorganized the OCD aligning the organization with

the priorities and requirements of NDRRMC and then on July 01,

2013, Office Order No. 03A was issued which amended/superseded

the previous order.

Under the present interim structure, several units were created and

activated. Key OCD officers were transferred or reassigned from one

office to another within the agency and the positions affected were

mostly senior management or core positions. The structure remained

unstable and to date, was not yet approved by DBM as required under

the abovementioned rule of RA 10121.

Accomplishments

Notwithstanding the above shortcomings, OCD was able to

accomplish the following in connection with the preparation and

conduct of response activities in the aftermath of typhoon

Yolanda:

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Regularly advised the President on the status of disaster

activities and recommended the declaration of the State

of Calamity;

Mobilized resources and personnel for disaster risk

reduction. It created augmentation teams for Region

VIII Operation Center;

Operated and staffed the NDRRM Operation Center on

a 24-hour basis for the purpose of coordinating all the

activities of the NDRRMC before, during and after

typhoon Yolanda.

OBSERVATIONS

1. Only 17% or ₱121,182,550.00 of the total available QRF of

₱692,766,612.00 for CY 2013 was utilized for typhoon Yolanda

due to inadequate planning, thus, depriving the disaster/calamity

victims of their basic subsistence needs. Gaps in the allocation

of the QRF to OCD and fund restriction also contributed to the

low utilization of the funds.

For CY 2013, OCD’s QRF appropriation amounted to ₱530

million in addition to the CY 2012 continuing appropriation of

₱162,766,612.00, thus a total of P692,766,612.00 was

available for OCD’s operations for last year.

No. 1 of the Special Provision(s) for OCD of the GAA of 2013

or RA 10352 states that “the QRF shall serve as a stand-by to

be used for relief and rehabilitation programs in order that the

situation and living conditions of people living in communities

or areas stricken by calamities, epidemics, crises, and

catastrophes occurring during the year may be normalized as

quickly as possible.”

In addition, OCD Memorandum No. 505 dated August 23,

2012 also provides for the Guidelines governing the OCD

QRF. Item III.2 of the Memorandum states that:

2. The QRF is provisioned during or immediately after a

disaster in order to save lives, ensure public safety and meet

the basic subsistence needs of the people affected. The said

fund shall be used for the following purposes:

a. Aid, relief and respond services to communities/areas

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affected by natural and human-induced calamities (including

epidemics as declared by the DOH, crises resulting from armed

conflicts, insurgency, terrorism and other catastrophes) such

as, but not limited to:

Gasoline for response vehicle/rescue equipment

Subsistence allowance for rescuing/responding units

(e.g. food expense, travelling expense, etc.)

Supplies for disaster responding activities

o Ropes, flashlight, empty sacks, shovel, POL,

chainsaw, hard hat, etc.

Non-food relief supplies for the victims of the disaster

as relief operations (response) such as, but not limited

to:

o Items in evacuation/refuge areas: tent, shelter,

supply, kitchen utensils, cookwares, pail, dipper,

folding beds, sleeping mats, mosquito nets,

blankets, pillows, personal hygiene kit, first-aid kit,

etc. (underlining supplied).

OCD The above funds were utilized for the following activities

in connection with typhoon Yolanda:

Table 25

Nature Amount

Cash advances for Operational

requirements of the NDRRMC

Operations Center

1,600,000.00

Cash advances for Operational

requirements of ROVIII Operations Center

200,000.00

Office Supplies 56,445.00

Fund transfer to AFP for petroleum, oil

and lubricant (POL) reserve for disaster

operations, subject to liquidation

118,645,912.00

Various groceries and medicines intended

for daily subsistence of duty personnel at

Command Center and RDRRMC VIII

Operations Center

680,193.00

Total 121,182,550.00

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As can be gleaned from Table 25, the funds were spent for the

requirements of the Operations Centers and POL, while nothing

was reported for the basic subsistence needs of calamity victims

notwithstanding the guidelines and other issuances on the

matter.

As for the funds spent for the operational requirements of the

NDRRMC Operations Center, management justified that the

Operations Center is where the DRRM Council Members gather

together before and during an emergency. It is where

coordination, sharing of information and resources takes place

and management decisions are facilitated. Naturally, food and

other expenses were incurred.

Section 15 of RA 10121 emphasized the need for coordination

during emergencies. The LDRRMCs shall take the lead in

preparing for, responding to, and recovering from the effects of

any disaster. Since the LGUs are also affected by the typhoon,

the nearby regional DRRMC augmented the administrative and

response operational requirements of the Region VIII DRRM

Council and the National DRRMC conducted the proper

coordination to support the local DRRMCs.

Under the DRRM, OCD does not only coordinate but also

orchestrates and implements the delivery of initiatives in the

four thematic areas of Prevention and Mitigation,

Preparedness, Response, and Rehabilitation and Recovery.

The evaluation showed that the reasons for OCD’s low QRF

disbursement rate are as follows:

The absence of projected plans/program of Expenditures

by the Central Office officials for the unforeseen

requirements of the disaster victims.

Restriction on the use of the fund; and

Gaps in the allocation of fund to OCD

A DBM study showed that OCD was able to fully utilize its

QRF prior to CY 2012. However, its QRF utilization from 2012

to 2013 declined because of the restriction on the use of the

fund. Before 2012, QRF can be used for pre-disaster activities,

but starting 2012, QRF was designated as standby fund, thus, it

can only be used at the onset of disasters or for response

activities.

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Fund allocation is based on the mandates of the concerned

agencies. In terms of financial resources, we observed that

OCD’s budget has declined significantly from P1 billion in

2012 to P650 million in CY 2013 due to the deletion in 2013 of

the usual yearly allocation for DRRM operations, but retained

in its QRF budget allocation.

Among the functions of OCD under RA 10121 are the

following:

Advise the National Council on matters relating to

disaster risk reduction and management consistent with

the policies and scope as defined in RA 10121;

Review and evaluate the LDRRMPs in coordination with

concerned agencies and/or instrumentalities, to facilitate

the integration of disaster risk reduction measures into the

local CDP and CLUP;

Formulate standard operating procedures for the

deployment of rapid damage assessment and needs

analysis (DANA) teams, information sharing among

different government agencies, and coordination before

and after disasters at all levels;

Provide advice and technical assistance and assist in

mobilizing necessary resources to increase the overall

capacity of LGUs specifically, the low income and in high

risk areas; and

Perform secretariat functions of the National Council.

It appears from the foregoing that relief and rehabilitation

activities supposed to be funded out of QRF are not included

among OCD’s functions, thus it is necessary to revisit the QRF

being released to OCD. Since most of its functions consist of

pre-disaster activities, such as support to DRRMC’s functions,

funds for DRRM Operations are more appropriate.

2. Various groceries and medicines amounting to ₱680,193.00

intended for the daily subsistence of duty personnel at

Command Center and RDRRMC VIII Operations Center were

still undistributed to date even if the activity had ended in

March 5, 2014.

On December 23, 2013, Check Number 0000146378 was issued

in favor of AFP Commissary and Exchange Service (AFPCES)

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in the amount of ₱680,193.00 for the purchase of various

groceries and medicines intended for the daily subsistence of

duty personnel at the Command Center and RDRRMC VIII

Operations Center based on the Purchase Request (PR) dated

December 4, 2013 of Director Rey Gozon, Regional Director,

OCDRC VIII.

The details of the purchase are as follows:

Table 28

Qty Unit Description Unit

Cost

Total

Amount

400 pcs Argentina Corned Beef 260g 42.75 17,100.00

400 pcs Argentina Meat Loaf 250g 22.50 9,000.00

400 pcs 555 Sardines 155g 12.25 4,900.00

400 pcs Libby’s Vienna Sausage 27.00 10,800.00

302 pcs Hunts Pork and Beans 22.25 6,719.50

400 pcs Ulam King155g 15.25 6,100.00

400 pcs Century Tuna Flakes 23.25 9,300.00

750 pcs Nissin Cup Noodles 60g 19.75 14,812.50

750 pcs Nissin Cup Noodles 40g 13.00 9,750.00

686 pcs Tekki Shomen Noodles 40g 11.75 8,060.50

15,00

0

pcs Nescafe 3 in 1 Orig 20g Sachet 4.50 67,500.00

1,936 pails F Martinez Holiday Mix 197.5

0

382,360.00

1,500 packs Disposable Plastic Cup 12 oz (25

pcs/pack)

18.00 27,000.00

4,300 pcs Absolute Distilled Water, 1 Liter 21.00 90,300.00

138 pcs Wilkins Distilled Water, 6 Liters 68.50 9,453.00

250 pcs Paracetamol Tempra Forte 3.50 875.00

250 pcs Loperamide Kremil S 4.75 1,187.50

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300 pcs Bio Flu 5.75 1,725.00

250 pcs Clusivol Multi Vitamins 5.50 1,375.00

250 pcs Mucobron Forte 7.50 1,875.00

Total 680,193.00

Due to the onslaught of typhoon Yolanda in November 2013,

OCD saw the urgent need to augment the administrative and

logistics operations of OCD Regional Center VIII. Thus, as early

as November 13, 2013 the OCD Administrator came up with a

directive for the deployment to OCDRC VIII of OCD personnel

coming from different Regional Offices.

Pursuant to the directive, the personnel concerned needed to

bring personal toiletries, sleeping bags, food provisions and

personal medicines.

OCD provided the daily subsistence of the duty personnel at the

Command Center and RDRRMC VIII Operations Center, thus,

on the basis of the Purchase Request of Regional Director

Gozon, OCDRC VIII, the office purchased in December 2013

from AFPCES various groceries and medicines for the purpose.

Due to the urgency of the need, competitive bidding was

dispensed with and the Negotiated Procurement (Agency-to-

Agency since AFPCES is a government agency) was adopted.

The ocular inspection conducted last March 14, 2014 revealed

that the items were still undelivered and remained intact at the

OCD Warehouse. We noted however, as verified with the

Operations Division of the OCD, that as scheduled, the third and

last batch of the augmentation team already ended last March 5,

2014.

While the earliest expiration date is December 2014, i.e. for the

distilled water and the noodles, the pressing concern why the

agency should be faulted for non-action is, other than these items

were not distributed for immediate consumption as intended, is

that the warehouse at the moment is not conducive for storage of

food items/medicines because it is not fully ventilated hence,

food items and medicines may get contaminated anytime. The

biscuits when sampled were wrapped in plastics and then placed

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in plastic pails; the bottled water likewise is made of plastic. All

these including the other provisions should be stored in a cool

dry place. The warehouse where these food items were stored

and three Supply personnel are housed is 600 sq.m. and have

only two electric fans for ventilation. Anytime soon these

provisions may all go to waste, if not remedied by management.

While we initially supported management’s mode of

procurement outside of public bidding due to the urgency of

need, now that the food items/medicines were still undistributed

and left to conditions as described above, we believe that the act

of management in procuring more than what was necessary for

the intended purpose and leaving the same in the condition

described above, constitutes unnecessary expenditures.

3. Donations received from both local and foreign sources intended

for victims of typhoon Yolanda totaling ₱48,815,622.83 as of

December 31, 2013 have not been utilized to date, depriving the

disaster/calamity victims of timely assistance in their lowliest

times and defeating the purpose of the donations.

The NDRRMC as a frontline agency activated the NDRRMC

Operations Center and continuously monitored the situation and

response efforts in the affected areas. Search and rescue

operations took place and disaster aid/relief assistance, financial

or otherwise came pouring in to provide basic services to the

victims.

DND Memorandum Order No. 1 dated May 16, 2005 provides

the General Guidelines and Procedures of the Calamity Fund

Management System. Item 3.3 of the Memorandum authorizes

the then NDCC (now NDRRMC) to receive donations in cash or

in kind from various government agencies and other sources. For

clarity, donations in cash are referred to as “Donated NDRRMC

funds.”

NDCC Memorandum Order No. 13 dated June 23, 1998 also

provides that donated NDRRMC Funds will be utilized for

payment of financial assistance to victims of calamities. Under

this Memorandum Order, the amount of financial assistance to be

granted to the families of disaster victims shall be Ten thousand

pesos (₱10,000.00) for the dead and Five thousand pesos

(₱5,000.00) for the injured. Claims for financial assistance shall

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be filed and processed at the RDCCs together with the following

documents:

1) For Injured Persons

Medical certificate from the hospital or clinic where the

victim was confined for at least three (3) days

Local DCC Police report on the incident

Indorsement for the payment of claims from the LDCC

Chairman

2) For Dead Persons

Local DCC or police report on the incident

Death Certificate

Certification from the Barangay Captain

Proof of filial relationship with the victim

Indorsement for the payment of claims from the LDCC

Chairman

All claims shall be valid within one (1) year only from the time

of the occurrence of the disaster or calamity.

As of December 31, 2013, donations received by NDRRMC

from both local and foreign sources intended for victims of

typhoon Yolanda reached a total of ₱48,815,622.83 and more

donations came pouring in. We noted however, that the

donations remained intact with the depository bank. There were

no disbursements to date out of the donations received.

Item 3.3 of the DND Memorandum Order No. 1 dated May 16,

2005, states that cash donations will form part of the Calamity

Funds when and only when the donations exceed the expenses

incurred for the purposes specified by the donor. By Calamity

Fund we mean that which is appropriated under the annual GAA

to cover aid, relief, and rehabilitation services to

communities/areas affected by man-made and natural calamities,

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repair and reconstruction of permanent structures, including

capital expenditures for pre-disaster operations, rehabilitation

and other related activities.

For donations received in the aftermath of typhoon Yolanda, we

can safely assume that the donors intended these donations for

the use of the victims and/or the communities affected by the

typhoon, unless otherwise required to be returned to the donor.

Clearly then, these donations should have been immediately

utilized to answer the clamor of the Yolanda victims for much

needed support and should not be restricted only to the grant of

financial assistance covered by the provision of NDCC

Memorandum Order No. 13 dated June 23, 1998. It will be

noted that under this Memorandum Order, financial assistance

can only be availed if claims are filed at the RDCC supported by

the documents enumerated above. However, in case of

emergencies, the production alone of the documentary

requirements would be very cumbersome for the victims, thus,

provision of assistance takes some time. What the victims need is

speedy delivery of basic goods and services as temporary relief

from their unexpected plight. We believe that this is the very

essence of the prompt donations entrusted by the donors and

NDRRMC should actively play the very important role lodged to

it in times of disasters.

4. The OCD does not yet have a relevant staffing pattern approved

by the DBM as required under Rule 7, Section 4 of the

Implementing Rules and Regulations of RA 10121.

The lack of relevant staffing pattern was seen as one of the

factors which affected OCD’s preparedness in performing its

functions pursuant to RA 10121. The analysis and review of the

Interim Organizational Structure of OCD showed the following:

Regional Directors were reassigned to head OCD’s interim

divisions

Non-organic personnel were given key positions/assigned

to positions with supervisory functions;

Personnel were designated to positions other than their

plantilla positions; and

Several memoranda/office orders were issued involving

transfer/ reshuffle of the same personnel.

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The foregoing resulted to:

Unstable organization due to frequent reshuffling of key

officials;

Difficulty in pinpointing responsibility;

Slow-paced action on the part of the affected personnel

because even if one may be professionally qualified, being

unexposed to the new assignments/policies and transactions

entail familiarization for a period of time;

Difficulty for some in understanding their new roles,

responsibilities and accountabilities and to cope with the

new environment;

Confusion in the signing and approving authorities;

Disruption in the performance of the agency’s

goals/mandate due to change in leadership and changes in

the internal structure; and

Violations of existing CSC and/or other government rules

and regulations on the hiring and placement of personnel.

RECOMMENDATIONS

1. Improve the planning activities giving due regard to foreseeable

impact/effects of the disasters/calamities. Implement these

activities and maximize utilization of the QRF allocations with

the end view of providing immediate basic services/assistance on

a wider scale.

a. Review the functions of the OCD Operations Division, the

NDRRM Service and the NDRRMC Operations Center.

Delineate clearly the functions of each office especially on

disaster operations which should be well understood by the

personnel composing each office and also by all personnel

of OCD. An inventory of the resources should be done by

the OCD Operations Division to be used as basis for

decision-making of the Operations Center. Determine the

possibility of merging divisions having similar functions to

avoid confusion.

b. Revisit OCD Memorandum Order No. 505 and all issuances

pertaining to QRF and disaster operations especially

response activities and align them with RA 10121.

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c. Conduct continuous capacity enhancement of the officers

and staff involved in DRRM activities.

d. Coordinate with DBM to revisit the QRF allocation of

OCD.

2. Direct the Logistics Division to seriously perform its functions

from planning to execution giving due regard to the needs of the

users to avoid incurrence of unnecessary expenditures.

a. Improve the planning activities giving due regard to

foreseeable disasters/calamities to come up with a policy or

guideline on the acquisition and distribution of food

items/medicines and the like which are perishable in nature

for whatever legal purpose or intent this may serve.

b. Consider identifying in the guideline the specific personnel

to handle this activity and the roles he/she will play to

pinpoint responsibility.

c. Direct those responsible to refrain from making advance

payment for supplies and materials not yet delivered

pursuant to Section 88 of PD 1445.

3. Coordinate with the LCEs through its Regional Field Offices to

determine the actual needs in the affected areas as well as the

needs of the calamity victims and pour in aid/rehabilitation

efforts to normalize their living conditions.

a. Coordinate with other agencies and other relief providers on

the grant of assistance already extended to the victims to

avoid duplication of assistance.

b. Utilize the donations or better yet maximize its use for its

intended purpose in order to assist and improve the plight of

the calamity victims.

c. Revisit DND Memorandum Order No. 1 and NDCC

Memorandum Order No. 13 and align them with the

requirements of RA 10121 to come up with an effective

fund administration of cash donations from local or foreign

donors.

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4. Avoid the frequent reshuffling of key officials, and if this cannot

be avoided, ensure that the reshuffling will not greatly affect the

smooth operations of the office.

a. Ensure that reshuffled personnel have the requisite

expertise and skills to assume the new responsibilities and

accountabilities.

b. Ensure that only organic personnel be assigned to

positions having supervision over career personnel.

c. Assign/designate personnel in accordance with their

plantilla positions.

d. Coordinate with CSC and DBM to come up with final

staffing pattern aligned with OCD mandated functions

pursuant to RA 10121.

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VISON AND MISSION

Vision

The Department is the primary catalyst for excellence in

local governance that nurtures self-reliant, progressive,

orderly, safe and globally competitive communities

sustained by God-centered and empowered citizenry.

Mission

The Department shall promote peace and order, ensure

public safety, strengthen capability of LGUs through

active people participation and a professionalized corps

of civil servants.

GOALS AND OBJECTIVES

Goals

Peaceful, safe, self-reliant and development-dominated

communities;

Improve performance of local governments in

governance, administration, social and economic

development and environmental management;

Sustain peace and order condition and ensure public

safety.

Objectives

Reduce crime incidents and improve crime solution

efficiency

Improve jail management and penology services

Improve fire protection services

Continue professionalization of PNP, Bureau of Fire

Protection and Bureau of Jail Management and

Penology personnel and services

Enhance LGU capacities to improve their performance

and enable them to effectively and efficiently deliver

services to their constituents

Continue to initiate policy reforms in support of local

autonomy

Reference: http://www.ocd.gov.ph/

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INTRODUCTION

The DILG is the Vice Chairperson for Disaster Preparedness under the NDRRMP. In

collaboration with other government agencies in the fulfilment of its role under this thematic

area, it is expected that there will be an increased level of awareness and enhanced capacity of

the community to the threats and impacts of all hazards. Furthermore, communities must be

equipped with necessary skills and capability to cope with the impacts of disasters. In

coordination with other concerned agencies, DRRM and CCA capacity of DRRM councils,

offices and operation centers at all levels should have already been increased. There must be a

developed and implemented comprehensive national and local preparedness and response

policies, plans, and systems. Lastly, there must be a strengthened partnership and coordination

among all key players and stakeholders.

The DILG also helps in the thematic area of disaster response. In partnership with the

DND and the DOH, it is expected to lead the integrated and coordinated search, rescue and

retrieval capacity.

The NDRRMP 2011-2028 shows the following Disaster Preparedness Outcome and the

corresponding outputs/accomplishments of the Department:

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Table 26. DILG’s NDRRMP Implementation

NDRRMP Preparedness Outcome DILG Preparedness Output (Accomplishments)

1. Public awareness to the threats and

impacts of all hazards

Distributed 399,266 IEC materials worth P3,551,366.00

2013 National Barangay Operations Office Report

2. Capability Building

a. Communities are trained to

cope with the impacts of

disasters

b. Seal of Disaster Preparedness

assessment

Strategic Planning Workshop for Panay River Basin – Iloilo City

Training on the preparation of Local Climate Change Action Plan in

Regions 3, 6, 10, 13, NCR and two events in CAR

Training on understanding multi hazards maps and its use to Local

Development Planning – Regions I, II, III, VI, VII, X, XI, XII, XIII and

CAR with frequencies of 4, 7, 7, 3, 2, 1, 3, 5 and 1 events, respectively

Training on Geographic Information System for Climate and Disaster

Risk Vulnerability Reduction in 12 regions covering 36 MRB Provinces,

16 cities and 128 municipalities. Regions CAR, I, II, IV-A, IV-B, VI,

VII, X, XI, XII and XIII

Popularization of Good Practices. Knowledge exchange forum; DRRM-

CCA (Canada-Philippines) in Regions CAR and VIII

2013 Local Government Academy Report

Conducted National Preparedness workshop, National Table Assessment

of Disaster, Part I and II

Preparedness Profile; and Enhanced Survey Tool targeting other hazards

such as Landslides, Tsunami and Earthquake and conducted

Environmental Compliance Audit.

2013 Bureau of Local Government Supervision (BLGS) Report

3. Institutional Capacities: Increase

DRRM and CCA capacity of local

DRRM Councils and Office at all

levels.

Established 1,313 LDRRMCs and 1,311 LDRRM Offices (LDRRMOs)

that are operational, self-reliant and fully functioning

2013 BLGS Report

4. Policies, plans and systems

developed and implemented

National and Local Preparedness

and Response systems.

Policies and Guidelines Issued (OSEC Report)

Issuance/Date Subject Matter

Joint Memorandum

Circular No. 2013-1

dated March 25, 2013

Allocation and Utilization of the LDRRMF

Department

Memorandum No.

2012-73 dated April

Utilization of LDRRMF

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NDRRMP Preparedness Outcome DILG Preparedness Output (Accomplishments)

17, 2012

Department

Memorandum dated

February 6, 2012

Directing every DILG City Director, City

Local Government Operations Officer and

Municipal Local Government Operations

officer to ensure functionality of Barangay

Disaster Risk Reduction and Management

Committee (BDRRMC)

Department

Memorandum

Circular No. 2012-08

dated January 12,

2012

Community Preparedness on, and Response to,

a Calamity in Every Flood-Prone and

Landslide-Prone Barangays

Department

Memorandum for the

President dated

January 11, 2012

DILG Issuances on Calamity Response

Protocols

Department Order

No. 2011-1564 dated

December 12, 2011

Official Designation of Regional Focal

Persons on DRRM

2011-80 dated June 3,

2011

Active Faults, Liquefaction Susceptibility

Maps and Earthquake-Triggered landslide

Susceptibility Maps Available in Phivolcs

Website

Department

Memorandum

Circular No. 2011-35

dated March 11, 2011

Tsunami Alert in Coastal Areas Fronting the

Pacific Ocean

2010-143 dated

December 9, 2010

LDRRMCs

5. Strengthened partnership and

coordination among all key players

and stakeholders

The BLGS engaged five CSOs with DRRM projects:

1. Alter Plan and Cope Foundation: Shelter Program formulation

to address disaster risk in Brgy. Rawis and neighboring

barangays along Yawa River in Legazpi City

2. SamahanngMamamayan-Zone One Tondo Organization:

Capacity Enhancement and Partnership Building between Urban

Poor Community members in Dagat-dagatan and Navotas City

on DRRM

3. Simon of Cyrene-Children’s Rehabilitation and Development:

Capability Building of the Stakeholders in mainstreaming

persons with disabilities in DRRM, Daraga, Albay.

4. La Liga Policy Institute: Making the LDRRMF work through

the alliance of seven LGUs

5. South Pacific Integrated Area Development, Inc.: Building

resilient communities to disaster, Southern Leyte.

2013 BLGS Report

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OBSERVATIONS

1. Despite the foregoing preparedness output, DILG has not successfully

achieved full preparedness of LGUs based on its own preparedness

assessment result which showed that LGUs belonging to the flood prone

areas are 23% prepared in terms of awareness, institutional capacities and

coordination.

A national table assessment of disaster was conducted by the BLGS on

LGU compliance on the following elements:

A. Leadership structure with organized LDRRMC and LDRRMO,

Incidental Command System, Disaster Operations or emergency

center required. DMC No. 2010-143

B. Risk assessment planning and budgeting with available hazard

maps, risk and vulnerability assessment, DRRM Plan and

contingency plan for floods. DMC No. 2015-141

C. Operational readiness such as the conduct of simulation

exercises, early warning system, evacuation alert system,

evacuation policy and stockpiles and equipage. DM series of 2011-

Calamity Response Protocol

D. External support system on community awareness and

partnership and volunteerism. DM series of 2010-Calamity

Response Protocol

The data was gathered by the Municipal Local Government Officers

through the “Seal of Disaster Preparedness Capture” form which covered

1,714 LGUs consisting of 80 provinces, 143 cities and 1,491

municipalities identified by the Mines and Geosciences Bureau (MGB)

within the 18 Major River Basins.

The assessment revealed that none of the LGUs attained high level of

preparedness, 35% revealed medium level and 56% showed low level of

preparedness and 9% of flood prone LGUs in 18 Major River Basins did

not provide information.

The assessment further showed gaps indicating low level of preparedness:

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1) Incomplete members in the DRRM Councils

2) Limitation in the plantilla position of DRRM Office with DRRM

Officer and three support staff. Only 67% of organized DRRMOs

have complete staff in charge on planning and research;

administration and training and operations and warning.

3) Incident commanders are mayors who may not have necessary

skills on disaster or emergency operations

4) Functionality of Disaster Emergency Centers was not determined

5) The DRRM Plans and Contingency Plans lack mechanisms on

communication and warning, search and rescue, evacuation

service, relief operations, transportation and medical or health

services, which showed 52% level of preparedness

6) No rescue drills were conducted related to flood

7) Capacity of warning and evacuation alert system to reach affected

families was not established

8) Only 27% of LGUs have not yet enacted an ordinance on forced

or pre-emptive evacuation

9) No available stockpiles and equipage due to absence of

baseline/standards

10) Information, education and communication (IEC) materials and

guides are insufficient in substance and in form

11) Coordination and communication with national government

agencies, other LGUs, CSOs, volunteers and business

organizations were not strengthened

Having identified the gaps, assessment results were not communicated to

higher authorities, corrective measures were not formulated, community

awareness was not remarkably established and IEC materials were not

sufficiently developed for all kinds of disasters. Operating mechanisms,

if there’s any, were not effectively disseminated. External support was

not mobilized.

Disaster related activities with other implementing offices within the

DILG and meetings with the implementing agencies in the NDRRMC

were not coordinated which resulted in fragmented

activity/accomplishment reports.

2. Out of P76 million fund allocation for the DRRM activities of the DILG,

only 43.5% or P33,071,955.88 was used with 56.5% of DRRM project

worth P42,928,044.12 unimplemented due to lack of coordination and

monitoring of project activities among implementing offices, resulting in

the LGUs’ low level of preparedness of 23%.

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Table 27

For CY 2013, the project had three components with

corresponding Fund allocation

1. Assessment to situate the level of

LGU preparedness and their

vulnerabilities to disasters

P 9,210,000.00

2. Capacity Enhancement to train and

promote tools and methodologies to

be able to develop capabilities for

LGUs and communities to be safe and

resilient to disasters

60,590,000.00

3. Enabling access to financing for

resource generation and project

development for various CCA-DRRM

initiatives

6,200,000.00

Total

P76,000,000.00

3. Funds allotted to Regional Offices were underutilized specifically in

Regions II, V, VII, VIII, IX and XI. Most of the regions observed

belong to LGUs with low level of preparedness and yet, funds

available were not fully used for capability building and for printing

of IEC materials.

The following table shows funds released, utilized and unused by

implementing and regional offices:

Table 28

Region

Allotment

Released/Utilized

Obligations

Unused

% of

Utilization

Fund Available 76,000,000.00 37,590,130.40 38,409,869.60 49%

OSEC 2,108,255.40 1,894,033.50 214,221.90 90%

NCR 373,367.00 261,345.00 112,022.00 70%

I 2,094,054.50 2,032,332.20 61,722.30 97%

CAR 5,524,467.00 5,330,452.17 194,014.83 96%

II 2,573,074.50 1,803,085.53 769,988.97 70%

III 4,281,250.00 4,281,250.00 - 100%

IV-A 2,985,096.50 2,732,308.26 252,788.24 92%

IV-B 123,201.00 120,630.50 2,570.50 98%

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V 2,029,547.50 1,672,505.00 357,042.50 82%

VI 2,874,429.50 2,680,384.17 194,045.33 93%

VII 2,628,587.50 2,244,976.40 383,611.10 85%

VIII 618,955.00 228,900.00 390,055.00 37%

IX 663,088.00 453,884.00 209,204.00 68%

X 2,602,109.00 2,576,185.75 25,923.25 99%

XI 2,404,367.00 1,055,684.40 1,348,682.60 44%

XII 2,487,660.50 2,487,658.00 2.50 100%

XIII 1,218,620.50 1,216,341.00 2,279.50 100%

Total Released 37,590,130.40 33,071,955.88 4,518,174.52

Unreleased Allotment 38,409,869.60

38,409,869.60

Balance Unused 4,518,174.52 4,518,174.52

Total Unused 42,928,044.12 4,518,174.52 42,928,044.12

The total unused fund of P42,928,044.12, which is 56.5% of the budget,

is composed of P38,409869.60 unreleased allotment and P4,518,174.52

total unused balance in the regions.

The amount unreleased and unused were due to the activities not

performed as indicated in the Operations Plan and Budget for DRRM as

indicated below:

Table 29

a) The Bureau of Local Government

Development did not pursue the

purchase of search and rescue

equipment

P20,000,000.00

b) The Office of Project Development

Service had no training conducted

for barangay project development

600,000.00

c) The LGA did not conduct training

on the formulation of the Local

Climate Change Action Plan with

fund allocation

6,000,000.00

d) The National Barangay Operations

Office did not pursue the

Community Based Training on

CCA-DRRM

13,446,000.00

Total estimated amount of activities not

performed

P40,046,000.00

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Table 30. DRRM Expenses

Expense Items Amount %

Supplies and Materials P 600,105.42 1.60

Travelling Expenses 914,704.50 2.43

Training Expenses 30,428,259.00 80.95

Communication Expenses 304,500.00 .81

IEC Materials Printing and

Binding Expenses 3,551,366.00 9.45

Rents 446,400.00 1.18

Consultancy 1,136,418.62 3.02

General Services 101,829.76 .27

Repairs – Office Equipment 106,547.00 .28

Total P37,590,130.30

The bulk of expenses were on trainings, printing and binding

expenses for IEC materials and consultancy services. Ineligible

expenses such as general services and repairs of office equipment

amounting to P208,376.76 were also noted.

The failure to implement planned activities due to lack of

coordination and monitoring activities delayed the process of

strengthening the capacities of communities to effectively respond

to and recover from the impacts of imminent disasters, thus, the

LGUs’ low level of preparedness by 23%.

4. The donation of the First Filipino Chinese Chamber of Commerce

II of P10 million in 2012 for the relief, recovery and rehabilitation

efforts of the victims of other calamities apart from typhoon Pablo

remained unused.

According to the DILG management, a MOA is being drafted to

facilitate the utilization of this fund.

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RECOMMENDATIONS

1. Require the Local Government Officers to take an active role

in disaster preparedness activities at the local level;

consolidate the DRRM activities in an office that has a direct

link to the LGUs who will take the lead with other

implementing offices that complement the support from the

Central Office; develop a comprehensive

2. Operations Plan and budget; communicate and coordinate

results of assessment within the implementing agencies in the

NDRRMC for consideration; deal with the gaps objectively;

and develop preparedness plans for other kinds of disasters.

3. Improve strategies in project implementation; coordinate the

activities of the implementing offices and make regular

monitoring report; and consolidate monitoring activities in an

office that has a direct link with LGUs to take the lead with

other implementing offices.

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VISION

The NFA shall be at the forefront in providing

excellent needed services to the grains

marketing industry towards global

competitiveness and committed to ensuring food

security.

MISSION

Pursue and accelerate integrated growth and

modernization of the food marketing

industry.

Provide excellent services towards attaining

food security and the stabilization of the

supply and prices of rice.

Assist the food marketing industry move

towards global competitiveness.

Empower rice farmers

CORE FUNCTIONS

Food security in staple cereals in times and

places of natural or man-made

calamity/emergency

Stabilization of staple cereal supply and

price

Buffer stock management

Regulation and enforcement

Reference: http://www.nfa.gov.ph

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INTRODUCTION

The NFA’s prime mandate is to ensure food security in staple cereals in times and places of

natural or man-made calamity or emergency. In times of disasters, especially when storms and

typhoons strike the country, there are undeniable effects not only to human lives, businesses and

infrastructure but also to agriculture. People might survive the wrath brought about by calamities, but

they will are left in need of basic commodities such as food.

Most areas struck by calamities are usually rendered impassable after the storm thereby making

it difficult to extend relief goods to calamity victims. As the government’s main provider of the

country’s staple cereal requirements such as rice, the NFA is given a 48-hour response time to

provide food in calamity or emergency stricken areas.

Aside from the problem of slow flow of relief goods to affected areas, affected areas might also

suffer from oversupply due to the increased demand for rice commodities from retailers who hoard

goods in anticipation of a price increase. In this regard, the NFA is also expected to restore or

maintain within two (2) weeks staple cereal supply and prices at levels immediately prior to a

calamity or emergency.

OBSERVATIONS

Levels of

Stocks

1. Levels of rice inventories of the NFA-Central District Office

immediately before and after the onslaught of typhoon Yolanda

were very much below the required buffer stock which could have

affected the accomplishment of its mandated function to respond to

rice requirements during calamities, as well as to restore/maintain

two (2)-week supply and price levels in preparation for calamities.

Also in NFA Region V, there were authorized releases that were not

issued indicating the agency’s inability to meet the supply

requirement.

2. In NFA Region V, not all the authorized stocks for issuance to the

areas affected by typhoon Yolanda in Region VIII were actually

issued by NFA Albay indicating inadequate stocks to meet the

required volume.

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Control

Procedures in the

distribution to

relief operations

Report on

Distribution

Reconciliation of Distribution/Sale Transactions

3. Control procedures or activities on complete documentation and

proper authorization in the distribution of rice for the typhoon

Yolanda relief operations were not adequately implemented at CDO

and South District Office (SDO) which could result in possible

losses to NFA.

Table 31. Number of Bags Distributed to DSWD, Other Government Agencies,

LGUs and Private Institutions for the Typhoon Yolanda Relief Operations

District/

Provincial Office

No. of Bags Distributed

to DSWD

No. of Bags

Distributed to

Other Govt.

Agencies/LGUs/

Private

Institutions

Central District Office (CDO)

North District Office (NDO)

South District Office (SDO)

East District Office (EDO)

Cavite Provincial Office (CPO)

77,840

85,500

56,050

-

-

6,332

1,260

3,400

400

10

Total 219,390 11,402

4. Variances in the total number of bags delivered to government

agencies and private institutions for the Typhoon Yolanda relief

operations were noted between the NFA regional, provincial and

district books and records, and the published management report;

thus, the reliability, accuracy and completeness of the reported rice

distribution cannot be ascertained.

5. In NFA Region VI, the reconciliation of monthly sales transactions

and preparation of report thereon as required in NFA SOP No. FS-

FA11 could have been a useful tool in coming up with reliable

reports on typhoon Yolanda relief operation-related activities.

6. NFA Region VIII had released a total of 225,136 bags of rice to

various LGUs, national government agencies and private

institutions for relief operations to the victims of typhoon

Yolanda from November 8 to December 31, 2013, of which 37,765

bags or P50,577,750.00 remained unpaid. Moreover, some rice

releases were not supported with documents and a total of 800

bags of rice purchased by LGU Hernani, Eastern Samar and the

Provincial Government of Eastern Samar remained unwithdrawn

as of December 31, 2013.

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Unpaid and underpaid Rice releases Repairs of damaged warehouses

7. Three NFA Provincial Offices of Region VIII incurred loss

totalling P535,100.00 due to price variance on the rice released

for relief operations to various LGUs, resulting in decrease of

sales revenue as of December 31, 2013.

8. In Region V-Albay, the audit team also noted that the credit sales

of 3,630 bags which should have a total cost of P4,900,500.00 at

P1,350/bag was paid by DSWD in the amount of only

P4,537,500.00 or at P1,250/bag, thus also depriving the NFA of

sales revenue in the amount of P363,000.00.

9. Needed repairs in various NFA Cebu Provincial Office

warehouses that were destroyed by calamities were not

immediately addressed thereby exposing rice stocks to possible

damage/spoilage, which may result in loss of government funds

and property when another calamity occurs.

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RECOMMENDATIONS

Monitor Levels of

Stocks

Control

Procedures in the

distribution to

relief operations

1. Strengthen the monitoring of the stock levels to ensure that:

a. The required 15-day and/or 30-day buffer stock levels are maintained

at all times for NFA to accomplish its mandate to respond within 48

hours to rice requirements during calamities, restore rice supply at

levels prior to a calamity, and the national food security through

stabilized supply and price of rice; and

b. Strategies are always in place for immediate stock dispersal/transfer

to replenish stocks especially during months when typhoons are likely

to occur, and during times of typhoons and calamities to restore and

bring rice inventories to buffer stock levels and/or to atwo (2)-week

rice supply prior to a calamity.

2. See to it that the control procedures on complete documentation and

proper authorization in the delivery of stocks for relief operations are

properly implemented by enjoining the responsible officials and

personnel to:

a. Immediately bill DSWD and NDRRMC and/or promptly reconcile

with their records, if necessary, the quantities delivered to them to

effect immediate collection and/or avoid non-collection of the

receivables for a period of time; and submit the contracts on the

credit sales to DSWD and NDRRMC for verification of terms of

payments and other conditions;

b. Maintain the complete records supporting the stock releases and

make the documents readily available for verification and

examination to facilitate the timely and substantiated reporting of the

rice distribution;

c. Obtain the approval of concerned officials before diverting stocks to

other delivery points/repacking centers and before the delivery of

stocks in excess of the authorized quantities;

d. Avoid the delivery of rice stocks to persons not covered by

authorizations to receive said stocks to easily pinpoint

accountabilities and to avoid risks and possible losses to the NFA, if

and when said deliveries are not acknowledged by the recipient

agencies;

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Distribution

e. Coordinate beforehand with DSWD and the other

agencies/institutions to provide NFA with their lists of authorized

representatives to receive the stocks;

f. Require the persons who receive the stocks, including NFA delivery

men and escorts, to legibly print their names, sign and/or place the

names of their office/s on the WSIs and delivery reports to identify

responsibilities/liabilities in case of loss of stocks during

deliveries; and

g. Consider collecting storage fees on rice stocks not immediately

withdrawn from CDO warehouses.

Reconciliation of

Distribution/Sale

Transactions

Unpaid and

underpaid Rice

releases

Repairs of damaged warehouses

3. Put in place a monitoring and review mechanism on the releases of the

authorized issuances so that the public, concerned agencies, and users of

the report are informed of the actual releases of NFA rice during relief

operations, as reference and inputs in assessing NFA’s response to the

disaster. Moreover, the significant difference between the reported

releases of NCR and the actual releases should be looked into to establish

the accountability for the stocks.

4. The NFA Iloilo Provincial Office Management should require that the

monthly reconciliation of sales transactions and the preparation of the

report thereon be performed in accordance with NFA SOP No. FS-FA11

even during the period of relief operations to ensure accuracy and

reliability of reports.

5. Immediate collection of the unpaid accounts for rice sold and storage fees

of the concerned LGUs and national government agencies.

6. Collect the deficiency in the amount paid for the rice sold on credit by the

concerned NFA Provincial Offices.

7. NFA Cebu should immediately implement the repairs of various

typhoon-damaged warehouses based on the program of works to avoid

further damage to rice stocks and properties.

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1 Section 3(h), PDRRM Act of 2010 (Republic Act No.10121) 2 Section 3(o), PDRRM Act of2010 (Republic Act No.10121) 3http://www.fao.org 4National Progress Report on the Implementation of the Hyogo Framework for Action (2009-2011) March 27,2011 5 Section 5, RA No. 10121 6 Section 10, RA No. 10121 7 Section 15, RA No. 10121 8 NDCC Memorandum No. 2, Series of 1999


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