2014

Commission on Audit

REPORT ON THE AUDIT
OF TYPHOON YOLANDA RELIEF OPERATIONS
1

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)


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20
21
21
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22
23
24
25
27
29


30
30
49
58
69
86
96



2

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
3

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


1

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 Nio, La Nia)

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 3
rd
out of 173 countries
based on exposure to hazards (Figure 1). Disaster can strike anytime, anywhere. It can cause
2

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 worlds largest
earthquakes occur. It is situated along two major
plates of the worldthe Eurasian and Pacific
Plates. The countrys 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

3

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.



4

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.


5

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.
6

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).

O
L
D

N
D
C
C
:

1
9

M
e
m
b
e
r
s
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
N
E
W

N
D
R
R
M
C
:

4
4

M
e
m
b
e
r
s
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 govt 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
7

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.

8

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
LCEs 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
9

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
Peoples 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 Presidents
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 governments
approved budget amounted to P7.5 billion. The breakdown of the special purpose fund is as
follows:






10

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
11

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 NDRMMCs endorsement or the Presidents approval. But when these
agencies QRF get depleted, they must request DBM for replenishment and seek the approval of the
President.
























12

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
Yolandas 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
13

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 Yolandas 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 Yolandas 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.

Yolandas 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).


14

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 Yolandas 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.

15

To facilitate the governments 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);
16

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.
17

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:

18





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.

19

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 anda
reaffirmation of our
administrations
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.
20

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
anyones 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 victimsand 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 governments
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
21

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 COAs 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)
22

- 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
23

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.

24








There are no means to analyze a disaster victims 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.
25

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
26













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.




27

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
28










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.







29

Endnotes

1
Section 3(h), PDRRM Act of 2010 (Republic Act No.10121)
2
Section 3(o), PDRRM Act of2010 (Republic Act No.10121)
3
http://www fao.org
4
National 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

































30

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
worlds 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/
31

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.
32

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

33

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






34

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













35

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.
36

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.

37













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.
38

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
39



























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.

40
























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 NDRRMCs 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;
41




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 1
st
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
42


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.

43

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
44






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.
























45

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.


46


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
47



















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 managements 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
48








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.





















49








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/

50



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


51



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:









52

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
53

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 3
rd
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):
54

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%

55


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
56

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
57

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.
























58









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/
59

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 Departments 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.





60

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
61

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
agencys 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:








62











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

63











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 Cashiers
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
64

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
65

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-
66

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
67

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.












68


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 DOHs
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.
69




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/
70



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
Councils Executive Director.

One of OCDs 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.

OCDs 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 NDRMMPs thematic area of disaster preparedness, Tables 23 and 24 present the
expected output and activities vis-a-vis the accomplishments of OCD.


















71



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














72


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
73

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:
74

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, OCDs 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 OCDs 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
75

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


76

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 OCDs 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.
77

Fund allocation is based on the mandates of the concerned
agencies. In terms of financial resources, we observed that
OCDs 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 OCDs 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 DRRMCs 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)
78

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 Libbys 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
79

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
80

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 managements 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
81

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,
82

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 OCDs 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 OCDs 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.
83

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 agencys
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.
84


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.

85

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.

























86






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/
87


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:


























88



Table 26. DILGs 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
89

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-Childrens 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
90

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:

91

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 theres 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%.
92





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%
93

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
94



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.

95

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.

























96






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
97

INTRODUCTION

The NFAs 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 governments main provider of the
countrys 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 agencys 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.

98

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.

99

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.

























100

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 NFAs 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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