THE Commission on Audit (COA) has released an Audit Observation Memorandum (AOM) regarding the Cagayan de Oro City Water District (COWD).
The memorandum highlights the payment of salaries to the Interim General Manager, Mr. Fermin V. Jarales.
The total amount paid was P788,008.20, but the payment was made without the required documentation.
According to the memorandum, the lack of proper documentation constitutes an irregular expenditure.
This raises significant concerns about regulatory compliance, accountability, and transparency within the water district.
The COA emphasized the importance of adhering to laws and regulations governing public funds.
COA Circular No. 2012-001, effective since June 14, 2012, outlines specific requirements for processing the first salary of individual claimants.
These requirements include a certified true copy of the approved appointment, an oath of office, and several other documents. The absence of these documents was a key point in the audit findings.
The memorandum also references provisions in the Civil Service Commission (CSC) Memorandum Circulars that reinforce the need for proper appointment documentation.
These rules are designed to ensure that all personnel actions in government agencies are conducted fairly and transparently, according to COA.
In response to the audit findings, COWD’s Interim General Manager Jarales said that he intends to comply with all necessary requirements as specified by COA.
He expressed his commitment to addressing the issues raised in the memorandum.
“I did not give any time to submit all the documents that COA needed, but all of those will be complied with as soon as possible,” he said.
He added that despite the challenges, Jarales remains optimistic about improving water services in Cagayan de Oro City.
He acknowledged the financial difficulties faced by the agency but affirmed that he is actively seeking ways to secure resources for better service delivery.
In an interview, Jarales also pointed out that no disallowances have been issued by COA so far.
He emphasized that the audit findings come at a time when transparency and accountability are more crucial than ever in public agencies.
Meanwhile, former COWD Board Director Gerry Caño said that to date, no documents have been submitted by Jarales to COA or even to the board.
He said that together with COA, they will continue to monitor Jarales’ compliance with COA’s recommendations.
“The results of this audit could have significant implications for the future management of the Cagayan de Oro City Water District,” said Caño, adding that it could affect the agency’s ability to provide reliable water services to the community.
