State auditors scrutinize Capitol’s purchase of shirts for students

Local

CEBU province’s multimillion-peso project to provide white round-neck T-shirts to public school students has come under scrutiny.

This was after state auditors uncovered a series of discrepancies in deliveries, documentation, and procurement records tied to the P59.05-million payment already released for the program.

The findings appear in the Commission on Audit’s (COA) 2024 Annual Audit Report, which reviewed the province’s P114.04-million contract to supply 966,481 shirts for learners in the Provincial and City Schools Divisions for School Year 2024–2025.

The amount paid as of Dec. 31, 2024 came from the Special Education Fund. The audit noted that the volume of shirts reflected in Acceptance and Inspection Reports (AIRs) differed from the figures logged by the warehouse.

Although AIRs reported that 500,479 shirts had been delivered, a warehouse report dated Jan. 13, 2025 showed mismatches involving 11,903 pieces. Warehouse personnel also did not record the 22,025 shirts reportedly received on Aug. 15, 2024.

The COA stated that the inconsistencies raised questions about the accuracy of the reported deliveries and the dates they supposedly occurred.

Additional issues surfaced in the AIRs: at least one did not state the delivery location, and staff later told COA that some items were received at the Cebu Provincial Capitol instead of the designated Provincial General Services Office Motor Pool Warehouse on M. Velez St.

An AIR also showed an erased signature line for PGSO acceptance.

Auditors highlighted another irregularity involving delivery dates.

The supplier had earlier asked the Bids and Awards Committee for a 15-day extension up to August 31, 2024, citing difficulty in sourcing materials. The request was approved.

Despite the shortage cited, deliveries were recorded on August 12 and 15, which are within the same period the supplier had claimed constraints.

COA also found entries indicating deliveries beyond the extended deadline, which should have triggered liquidated damages under procurement rules.

A separate review of issuance documents produced another large discrepancy.

Requisition and issue slips indicated 500,479 shirts, but the warehouse’s issuance report showed only 313,950 had been released — a difference of 182,372 pieces.

COA said the gap affects the reliability of the Capitol’s inventory records and noted that the province had not submitted the list of student beneficiaries to verify distribution.

The audit also questioned the supplier’s supporting documents.

Two Secretary’s Certificates issued in 2024 pointed to a corporate board meeting held in 2022, nearly two years before the invitation to bid was released on May 21, 2024.

COA said this raised the possibility that the supplier may have had advance knowledge of the project.

Meanwhile, earlier, it was reported that the 2024 audit of Cebu Province also drew a qualified opinion.

COA highlighted discrepancies such as unverified cash in bank totaling P4.5 billion, 26 completed projects misclassified in property and equipment accounts, and structures no longer qualifying as provincial assets but still recorded in the books.

Welfare goods and certain accounts payable were found unreliable, emphasizing the need for stronger internal controls and accurate financial reporting.(MyTVCebu)