LGUs posted P1.136-B unliquidated cash advances in 2012

MANILA, Philippines - Local government units (LGUs) from all over the country posted P1.136 billion in unliquidated cash advances as of Dec. 31 last year, the Commission on Audit (COA) said.

The COA, in its annual financial report released recently and submitted to President Aquino on Sept. 27, urged local officials to settle the issue immediately.

State auditors warned that charges would be filed against erring local officials who fail to submit liquidation.

Records showed that of the P1.136 billion in unliquidated cash advances granted to local officials and employees of various provincial governments, cities and municipalities in 2012 and in previous years, P1.119 billion were one to more than five years past due.

Region II accounts for the highest amount with P482.6 million, followed by Region V at P220.8 million, Region 1 with P147 million, and Metro Manila at P145.4 million.

Based on COA Circular No. 97-002, state auditors noted that cash advances shall be liquidated as soon as the purpose for which it was granted has been completed.

Under the rules, non-liquidation of unexpended cash advances results in the non-recognition of the expenses on the period incurred.

Worse, the COA report found more violations such as cash advances granted without specific purposes and which were liquidated with inadequate supporting documents.

One local government in Region V revealed cash advances of P5.842 million were granted for no specific stated purpose, state auditors said.

In the province of Lanao del Sur, a series of cash advances by municipal treasurers intended for payment of salaries, wages, traveling expenses and other operating expenses of LGUs were documented by a mere disbursement voucher.

“The grant of cash advance, with no specific and adequate supporting documents, and legal purpose and the failure of concerned officials and employees to liquidate their cash advance upon demand is a prima facie presumption under Article 217 (Revised Penal Code) that the said fund was put to use for personal purpose and benefit,” the COA report stated.

The 2012 financial report covered the financial data of 1,685 LGUs including 80 provinces, 143 cities and 1,462 municipalities with only 29 municipalities excluded because of unavailability of data.

Senate President Franklin Drilon and Speaker Feliciano Belmonte Jr. have also been given copies of the 698-page report.

COA had been individually reporting the unliquidated cash advances of all government offices in agency-specific annual audit reports.

The City of Manila, for instance, had P47.034 million in unliquidated cash advances as of Dec. 31, 2012, thus city officials were directed to address the matter immediately.

COA Circular No. 2012-004 dated Nov. 28, 2012 had previously required the demand of immediate liquidation and settlement of all cash advances outstanding as of Dec. 31, 2011.

Under the rules, “failure of an accountable officer to liquidate his outstanding cash advance on or before Jan. 31, 2013 shall constitute cause for the filing of malversation charge under Article 217, failure to liquidate cash advance under Article 218, both of the Revised Penal Code or criminal prosecution under Section 128 of P.D. No. 1445.”