AUDIT OBSERVATION MEMORANDUM NO. 3

AUDIT OBSERVATION MEMORANDUM NO. 3. Construction of Bulan Integrated Bus Terminal at Brgy. Fabrica, Bulan, Sorsogon showed an accomplishment of 99.42% showing a deficiency of 0.58% unaccomplished or an equivalent amount of P191,536.13 for refund / completion by the Contractor.

DISCUSSION:

Ocular inspection conducted by Engr. Roberto F. Rodriguez and Engr. Danilo P. Azupardo, Senior and Supervising Technical Audit Specialist, respectively both of COA Regional Technical Services Office, Region V Legaspi City, on July 16, 2008, the day the undersigned paid a courtesy call with Hon. Mayor Helen C. De Castro, showed that the above named project is only 99.42% completed with the deficiency of 0.58% unaccomplished. This was due to the fact that the Bus Terminal is still tapped to temporary source pending approval of SORECO of a permanent line leading to the building. The transformer being used is a 25 KVA instead of a 50 KVA, as programmed, also included in the deduction, being accessory to the transformer in the cut-out/lightning arrester and the corresponding KWH meter.

Inspection report dated August 19, 2008, prepared by Engr. Roberto F. Rodriguez, Sr. TAS, reviewed by Danilo P. Azupardo, Supervising TAS and approved by Vidasto D. Gambito, Chief TAS, OIC RTSO on the construction of Bulan Integrated Bus Terminal undertaken by LGU Bulan, Sorsogon was received by this end on September 9, 2008 in a 4^th Indorsement by RCD Tita B. Embestro, referred to Mr. Jose Rey Binamira dated September 1, 2008.

Agency accomplishment report dated December 4, 2007 was 100% completed. While agency certificate of acceptance was dated December 4, 2007 and notice to proceed was dated December 13, 2006, after a lapsed of one hundred fifty-six (156) calendar days starting July 1, 2007 to December 4, 2007.

COA’S RECOMMENDATION:

Require S.C. Baldon Construction and Supply represented by Shirley R. Baldon to rectify the unaccomplished deficiency of 0.58% or refund the equivalent amount of P191,536.13 cited on the inspection report abovementioned dated August 19, 2008.

LGU’S COMMENT:

The Local Government of Bulan has notified the Contractor of this particular finding. The Office of the Municipal Engineer has been tasked to coordinate with the contractor and implement any and all measures necessary to correct the deficiency mentioned.

The Commission on Audit shall be notified of the accomplishment.