MANILA, Philippines - The Commission on Audit (COA) lauded the Senate for saving about P338 million in 2011 and upholding the Department of Budget and Management (DBM)’s directive to return unused cash allocations to the national treasury.
The Senate has returned to the national treasury a total of P338,134,834.92 in 2011, the COA said in its annual audit report.
“We commend the legislative accounting service of the agency for complying strictly with the DBM-National Cash Allocations (NCA) rulings,” the 31-page report stated.
Under the DBM directive, all unused NCA corresponding to the book balance shall automatically lapse at the end of that month.
The COA however cited the Senate for failure to account for an aggregate amount of P3.627 million, which remained unsettled as of Dec. 31, 2011 that is “inconsistent with certain provision of law/regulation.”
As of Feb. 27, 2012, only P1,411,781.69 remained unliquidated.
“We recommend that management closely monitor liquidation of individual cash advances and strictly observe the provision of COA circular No. 97-002 and PD 1445,” the COA said.
Invalid prepaid accounts?
The COA also noted what it described as “doubtful validity and correctness of some prepaid accounts.”
There is a total of inactive prepayment of P700,829.77 by yearend 2011. Subsidiary ledgers examined by state auditors showed that the prepayments included “inactive balances.”
“Some were aged more than a decade and the payees were no longer existing or their whereabouts were not available in the records of the agency,” the COA said.
Lost income
The COA also expressed concern over the “loss of income on canteen concession and catering services” when the Senate allowed the concessionaire to use for free kitchen space and dining area, electricity and water.
The concessionaire (Yakitori Dori Bar, Grill and Restaurant) was also not paying any fee for monthly pest control operations of kitchen and dining area as well as the regular maintenance of concessionaire’s equipment, the COA said.
“Per our verification, the canteen concessionaire did not reciprocate the free rental given by management in terms of best price to Senate employees,” the COA said.
The COA recommended that the Senate consider the “economic side of the transaction and the welfare of the employees by collecting, at least, the cost of utilities used by the concessionaire.”
In its 2011 report, the COA also mentioned the failure of the Senate leadership to comply with tax laws when it violated Bureau of Internal Revenue (BIR) regulations to impose certain taxes on various bonuses, which were beyond the regular ones.