8/10/2019 WARA Audit Findings

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 Agency/Region: Region II Group No. 26

 Audit Area:Extension of the implementation of provision of crop

insurance assistance wet cropping season 2014 ( Weather

Adverse Rice Areas)

Name of CGM:Raquel O. Reyes

Date Prepared: November 21, 2014Reviewer/Date:

Topic Sentence Criteria Condition(s) Causes Effect(s) Recommendations1. Many recipients of the crop

insurance assistance wet

cropping season 2013-2014

Weather Adverse Rice Area

(WARA) were also covered by

the Agrarian Reform

Beneficiaries- Agricultural

Insurance Program (ARB-AIP)

of the DAR or the Sikat Saka

of Land Bank contrary to

Section 1.2 of the

Implementing Guidelines and

Section 2.2 of theSupplemental Regional

Guidelines on the

implementation of the DA-

Subsidized Crop Insurance

Premium for Rice Farmers in

Region 2 for CY 2013, as

extended for CY 2014,

resulting in double insurance

or multiple benefits provided

to the farmers.

1.MOA between DA

and PCIC

Memo Order No.

13, s. of 2013

Imp. Guidelines for

DA-RPCISP

Supplemental

Guidelines for DA-

RCISP for Region 2

1. Many Weather

Adverse Rice Area

(WARA)

beneficiaries were

recipients of both

the ARB-AIP or the

LBP Sikat Saka

within the same

cropping season

resulting in double

insurance coverage

of a particular crop

or multiple benefitsprovided to the

same farmers within

the implementation

period of the

program.

1. Verification of

existing and

previous insurance

coverage/s is done

manually on the

automated

Underwriting

System of PCIC and

therefore prone to

human error. The

program of the

System is not

provided with checkpoint information to

aid in the

prevention of

duplication of

insurance cover or

multiple benefit

provision to a

particular farmer

pursuant to

underwriting

policies.

1. The DA’s full

premium subsidy

intended to provide

crop insurance

protection to

various and

different farmers

are defeated. Some

farmer-beneficiaries

are repeatedly

benefited with

insurance coverage

from season toseason at the

detriment of other

qualified farmer

beneficiaries who

were not covered

due to limited funds

2. Some farmers

received coverage

with the higher

insurance cap under

the DAR-AIP at a

maximum of

P25,000 are also

insured under

WARA at a

maximum coverageof P10,000 resulting

in double insurance

of some lots, hence

some amount of the

fund was not

properly utilized.

1. Enhance the automated

Insurance Underwriting

System of PCIC to provide a

system check or instant

information that can prevent

situations such as: 1)double

insurance coverage of a

particular crop/lot; 2) multiple

benefits received by one

farmer during the same

planting season pursuant to

implementing guidelines; or 3)

monopoly of recipients ofgovernment’s agricultural

programs in support to the

marginal farmers that tend to

limit the beneficiaries,

thereby aid in the effective

implementation of policies

and parameters such as

Section 1.2 of the

Implementing Guidelines and

Section 2.2 of the

Supplemental Regional

Guidelines on the extended

implementation of the DA-

Subsidized Crop Insurance

Premium for Rice Farmers

(WARA) in Region 2 for CY2013, and of other similar

agricultural support programs

of the government.

2.The DA-Crop Insurance

Assistance Wet Cropping

Season 2013 -Weather

Adverse Rice Areas (WARA)

Program initially

implemented effective 2013

wet cropping season until

December 31, 2013 which

was extended until December31, 2014 was used for the

insurance cover of rice crops

of 1,608 farmer-beneficiaries

during the 2014 dry season

under the same program. This

is a departure from the

guidelines expressly providing

for the utilization of this fund

for insurance cover during

the wet cropping season.

2. MOA between DA

and PCIC

Memo Order No.

13, s. of 2013

Imp. Guidelines for

DA-RPCISP

Supplemental

Guidelines for DA-

RCISP for Region 2

2. The WARA fund is

intended to support

the marginal

farmers against

losses due to crop

damage arising from

natural calamities

and plant pest and

disease infestation,and to improve

agricultural

productivity to the

identified weather

adverse rice areas to

be implemented

effective 2013 wet

cropping season.

The implementation

period was

2. The Management

of PCIC RO 2 viewed

the extended period

of implementation

of this program to

be of year-round

validity in the year

2014 and not

limited only duringthe wet cropping

season of this year.

2. Program fund for

the WARA wet

cropping season

amounting to P1,

148,154.65 was

used during the

2014 dry cropping

season which could

have been used forthe insurance

coverage of more

crops planted

during the climatic

adversity prone

wet season of this

year and/or at the

maximum insurance

coverage of the

same.

2. Prudently implement free

crop insurance coverage

programs of the government

for a more meaningful and

successful implementation of

agricultural productivity

support to the marginal

farmers specifically observing

the intent and timing ofimplementation of a program

like the DA-Crop Insurance

Assistance Wet Cropping

Season 2013 - Weather

Adverse Rice Areas (WARA)

Program.

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extended by the DA

until December 31,

2014. There is no

express provision for

the use of this fund

for coverage of rice

crops during the dry

season in CY 2014.