Naval Forces in Cebu among top 3 Navy units with unliquidated cash

The Lapu-Lapu City-based Naval Forces Central has been reported among the top three units of the Phillippine Navy in terms of unliquidated cash advances, according to the Commission on Audit's Annual Audit Report for 2005.

There are 13 units of the Navy, and the Naval Forces here in Cebu was on the top three with still unliquidated cash advances by end of 2005.

The Naval Forces Central accumulated P898,640.52 in unsettled advances that is about 75 percent more than its accounts in 2004.

COA said some portions of this amount have been granted to officers who have retired already or have been on an absent without leave status.

The granting, utilization and liquidation of cash advances, COA said were granted even if previous ones were not yet liquidated or those that were not liquidated within the prescribed period due to non-submission of required documents, said CSC.

These unliquidated cash advances, reflected in the books of accounts by year end, resulted in the understatement of the appropriated expenses accounts and overstatement of the accounts: Cash Disbursing Officers and Due from Officers and Employees.

In response, the Navy command commented that field accountants were already reminded to adhere strictly to the "No Liquidation, No Cash Advance" policy. It also directed special disbursing officers to speedup the submission of cash liquidation.

COA recommended that management should require all accountable officers to liquidate immediately and regularly their cash advances, after compliance of the purpose of which the cash advance was granted.

COA said penalties should be imposed against those who defy and neglect demand letters to settle their liquidation.

Those that could no longer be liquidated should bear notations on the reasons of non-liquidation. All accounting units should implement also a monitoring scheme, by maintaining an updated individual subsidiary ledger, for each accountable officer.

The Philippine Navy was created through the issuance of an "unnumbered" Presidential Decree when General Emilio Aguinaldo proclaimed the country's revolutionary government.

The Navy, named initially as Offshore Patrol, was initially placed under the Department of Foreign Affairs. In 1945, it was renamed to Philippine Navy Patrol before it finally became the Philippine Navy in 1951. - Ferliza C. Contratista/RAE