The University of the Philippines (UP) has been flagged by the Commission on Audit (COA) for deficiencies in its investments amounting to over P15 billion
“Deficiencies were observed on the investment undertakings of the University totaling to P15,055,304,258.31,” read the 2022 audit report made by COA on UP.
The audit body said the deficiencies discovered include “investment allotments and trust funds amounting to P400,000,000.00 as time deposits instead of using the funds for the purpose intended as trust funds are not among the income contemplated in RA No. 9500 which may be invested at the discretion of the University.”
There are also “reprogrammed funds under the General Fund amounting to P18,048,287.93 and unutilized Trust Funding amounting to P10,316,350.79 were placed in time deposits.”
The COA also found “long period of investment placement for more than two (2) years for Investment Bonds and Treasury Bonds totaling P234,000,000.00.”
The audit body observed lack of transparency as to the nature/source of the funds placed under investment; non-submission of documents necessary to monitor the receipt funds by the bank; absence of guidelines on the disposition of funds for time deposits and investments, the manner the income generated will be utilized and/or the programs/projects intended to be financed as objective of investing public funds; and no proper segregation of duties among members of the Income and Investment Committee (IIC).
It said this affected “the reliability and propriety in the disposition of funds through investments and the manner of utilizing income.”
Meanwhile, the COA said it has already made a number recommendations to the university to address the issues including asking UP Diliman “stop the practice of investing outright funds both from General Fund and Trust Fund that are intended for specific purpose as provided in the GAA (General Appropriations Act) and/or Memorandum of Agreements.”
The audit body told UP Diliman that it should “obtain approval and/or authority from the DBM (Department of Budget and Management) to invest funds in excess of appropriations received from the General Fund and authority from source agencies to invest funds received through Trust Fund.”
It also asked UP Manila to enhance the investment order form (IOF) to reflect the source of funds and submit IOFs and the proof of acknowledgement from the banks to the audit team; comply with Section 24 of RA No. 9500 that investments of P234 million should be for a period of not more than two years; account the dollar investment funds relating to foreign grants or donations with specific purposes and submit data whether the projects to which the grants were made are already completed or terminated; and account all investment funds that has been sourced from the general fund including the interest income earned then submit to the audit team.
UP Diliman, UP Manila and UP Baguio were also told to provide policies and specific guidelines as to the sources of funds invested, manner of income utilization, and programs and projects for which the income generated from the various investments are intended to be utilized.
The COA also recommended to UP Mindanao to effect the transfer to the national treasury the time deposits under the trust fund in accordance with Section 10 of the general provisions of RA No. 11639.
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