COA tells Alegria to withhold wages of officials, workers with CAs

CEBU, Philippines - The Commission on Audit (COA) has ordered the withholding of salaries of officials and employees of the Municipality of Alegria, Cebu who still have unliquidated cash advances with a total amount of P3.2 million.

The findings appeared in the 2011 audit report of which the amount was accumulated from those granted in prior years, resulting in the overstatement of asset account and understatement of expense accounts of the local government unit.

As of December 31, 2011, outstanding cash advances representing the total balance of Advances to Officers and Employees amounted to P3,248,992.07 for the three funds.

These include the General Fund in the amount of P3.1 million; Special Education Fund in the amount of P55,609 and Trust Fund in the amount of P31,530.

COA said that failure of the concerned accountable officers to settle/liquidate their accounts within the reglementary period is a violation to its Circular No. 97-002 dated February 10, 1997 which enumerates the general guidelines in the granting, utilization and liquidation of cash advances.

Section 4.1.2 states that “No additional cash advances shall be allowed to any official or employee unless the previous cash advance given to him is first settled or a proper accounting thereof is made.”

Section 4.1.3 also states that “A cash advance shall be reported on as soon as the purpose for which it was given has been served.”

COA said that analysis of advances to officers and employees account in the total amount of P3.2 million which were granted in the prior and current years revealed that these were not liquidated as soon as the purpose for which they were given had been served.

“Some employees/officials were granted additional cash advances even if the previous cash advance(s) had not been liquidated.  This practice violates the above-cited regulations,” it said.

COA recommended that the municipal accountant should demand and require the immediate settlement/liquidation of those pertaining to prior and current years’ outstanding cash advances for Advances to Officers and Employees by withholding payment of salary or any money due to them. (FREEMAN)