CEBU, Philippines - The Commission on Audit (COA) has told the local government unit of Argao to impose sanctions on accountable officers who failed to liquidate their cash advances within the prescribed period, by withholding their salaries.
In its 2012 Annual Audit Report, COA has found unliquidated cash advances that had accumulated to P3.8 million as of year-end due to non-settlement as soon as the purpose for the grant has been served.
This is in violation of Section 4.1.3 of COA Circular 97-002, “resulting in the misstatement of the income and expense and other related accounts and possibly exposing unused or unremitted cash in the hands of concerned accountable officials to misapplications due to long overdue liquidation and settlement.â€
Section 4.1.3 provides that “a cash advance shall be reported as soon as the purpose for which it was given has been served.â€
Section 5.1.3 also provides that “failure of the accountable officer to liquidate his cash advance within the prescribed period shall constitute a valid cause for the withholding of his salary and the instruction of other sanctions.
COA review and verification of Argao’s year-end financial statements disclosed that advances to officers and employees from the general fund in the amount of P3.6 million and from trust fund in the amount of P186,885 or a total of P3.8 million remained unliquidated as of December 31, 2012.
“We have requested the Municipal Accountant to provide us with a schedule of the said unliquidated cash advances, but to date we have not received any,†COA said.
COA also recommended that accountable officers with outstanding balances be required to immediately submit their liquidation report/documents.
It added that the accounting section be required to record the liquidation documents submitted by the concerned accountable officers so that the corresponding expense accounts will be booked up. (FREEMAN)