COA says Ronda cash advances illegal

CEBU, Philippines – More than P4 million in cash advances remain unliquidated in Ronda, southern Cebu, according to the Commission on Audit (COA).

Moreover, the Municipal Government of Ronda granted cash advances to officials and employees despite their failure to liquidate previous cash advances. Worse, cash advances were released to job order employees and contractual workers.

Section 174 of the Government Accounting and Auditing Manual states that only permanent officials and employees shall be granted cash advances.

Also, granting additional cash advances to officials and workers with unliquidated amounts is a violation of COA Circular 97-002 and Section 89 of Presidential Decree 1445, auditors stressed.

Most cash advances incurred were for travel expenses.

Auditors called on the mayor, the municipal treasurer, the accountant to strictly observe the rules.

Also, the municipality failed to conduct a physical inventory of its property, plant and equipment so it could not be ascertained if their claim of a P29,688,403 worth of assets is accurate.

"The agency failed for several years to conduct a physical count of its property and prepare a report on the physical count of property, plant and equipment which is a violation to Section 124 paragraph 2 of the New Government Accounting System (NGAS) Manual," stated the auditors in their report.

Section 124 of the accounting manual states that a physical count of property, plant and equipment shall be made each year.

COA said that they sent a letter in January 19, 2010 asking the municipal mayor to submit a report on the physical count of property, plant and equipment as of 2009.

This has been a yearly audit issue for the town, according to government auditors, who recommended the creation of inventory committee.

COA also observed that Ronda's treasurer does not coordinate with the municipal accountant who keeps records of procurements. (FREEMAN)