COA: P15M cash advances unliquidated in Aloguinsan

CEBU, Philippines - The cash advances granted to officers and employees in the municipality of Aloguinsan have accumulated to around P15 million as of December 31, 2013.

 These include the P9.2 million granted in 2004 up to 2011 and the P5.7 million granted in 2012 up to 2013.

 In its 2013 audit report, the Commission on Audit said the accumulation, as of yearend, has caused legal presumption that the cash advances granted to the concerned accountable officers have been utilized to their personal use.

 COA Circular No. 2012-004 dated November 28, 2012 provides final demand to settle unliquidated cash advance.

 “Wherefore, final notice and demand is hereby made to all concerned to settle and liquidate all outstanding cash advances as of December 31, 2011 on or before January 31, 2013,” it states.

 COA said the circular shall serve as the demand required under appropriate law, rules and regulations for accountable officials, including those separated from service or have been transferred to other agency, to settle their unliquidated cash advances.

 State auditors have already communicated to the municipal government for their information and appropriate action.

 “We are concerned of the consequences for the failure of the accountable officers to liquidate their cash advances as provided for by the said circular,” COA said.

 In its report, COA said due to the non-liquidation of these cash advances, the corresponding expenses incurred by the accountable officers out of their advances could not be verified for propriety and could not be taken up in the books.

 “Likewise, it resulted in the tying-up of government funds in the hands of the accountable officers which could have been used for other beneficial and developmental purposes,” it said.

 COA asked the municipality to take the necessary and appropriate actions for the failure of the accountable officer to liquidate their cash advances as provided for under COA circular.  (FREEMAN)