COA: Alegria released funds sans documents

CEBU, Philippines - The disbursement of public funds without proper documentation and supporting documents was among discrepancies discovered by the Commission on Audit-Regional Office in Algeria town.

In their latest 2008 annual audit report of the commission, COA said the town exceeded the disbursement of petty cash fund and a payroll was disbursed without supporting documents.

Section 48 of the New Government Accounting System (NGAS) provides that payments through petty cash shall not exceed P1,000 per petty cash voucher.

Auditors said that petty cash fund intended for the payment of petty operating expenses must not exceed P1,000 per petty cash, but records showed that various payments in excess of P1,000 were paid through petty cash fund, including those recurring expenses.

COA said the municipality has a maintaining balance of P60,000 for petty cash fund and replenishment is made two or three times every month. The cashbook also shows that the petty cash fund was replenished even if it has a balance of more than 25 percent of the petty cash.

When inquired by the auditors, the disbursing officer said that he was not aware that payment through petty cash fund shall not exceed P1,000 per transaction.

“It is recommended that no payments be made by the disbursing officer from the petty cash fund if payments per transaction exceed P1,000,” the annual report read.

In the same audit report, the commission also found out that municipal payroll for the payment of monetization amounting to P736,357 was disbursed without supporting documents to support the claim.

According to the auditors, this violates Section 4(6) of the Presidential Decree 1445 that states that “all claims against government funds should be supported with complete documentation”.

The auditors also said that Civil Service Commission provides that “officials and employees in the career and non-career service whether permanent, temporary…who have accumulated 15 days of vacation leave credits shall be allowed to monetize a minimum of 10 days. Provided, that at least five is retained after monetized and provided further that a maximum of 30 days may be monetized in a given year.”

COA said the fund had no supporting documentation such as an application for leave credits duly approved by the Chief Executive and recommended by the Human Resources Office.

When the commission inquired from the HRD, they said that they did not know leave application were required in the grant of monetization.

“It is recommended that application for leave must be attached and submitted as basis for the payment of monetization and effect payment only if disbursement voucher is properly documented specially those requirements, which are basic,” the commission said.

The commission also noticed that the mandated 20-percent development fund was not utilized for the intended purpose as salaries of job order personnel were charged to the fund.

The total disbursement incurred amounted to P5,122,937.09 of which the audit report showed that the amount of P2,089,936.79 was spent for the salaries of these personnel working in the different offices, according to the report.

“It is recommended that the 20 percent Development fund should be utilized for its intended purpose. Labor payroll for job order employees in the guise of labor of projects should be charged to its appropriate account in the general fund,” the report said. — Garry B. Lao/BRP