CEBU, Philippines - The Commission on Audit has asked Tuburan town officials and employees to liquidate outstanding cash advances amounting to P5.8 million.
COA’s 2013 audit report disclosed that a bulk of the unliquidated cash advances are for the Intelligence Fund amounting to P4.9 million from 2010 to 2013 or 84 percent of the unliquidated advances as of December 31, 2013.
The state audit agency said unliquidated advances granted to officers and employees may expose any unexpended amounts to risks of loss or misuse and deprives the government from the use thereof for other important projects.
“Moreover, expenses incurred out of the cash advances were not recognized and recorded, thereby giving risk in the misstatements of expenses and other related accounts,†the report reads.
Section 5.7 of COA Circular 97-002 dated February 10, 1997 states that when a cash advance is no longer needed or has not been used for a period of two months, it must be returned to or refunded immediately to the collecting officer.
COA Circular No. 2003-003 also requires that all cash advances chargeable against the intelligence and/or confidential funds of all local government units shall be liquidated within one month from the date the purpose of the cash advance was accomplished. As reported in its audit report the previous year, COA said irregular practices still persisted in the current year’s transactions, which indicated management’s lack of serious effort to adhere to guidelines.
The municipality reportedly did not require the immediate and full refund of cash advances in cases where the trips were cancelled or when excess amounts were granted.
Special cash advances were also not liquidated as soon as the purpose for which it was given has been served such as the Educational Tour in Dipolog and Cagayan de Oro and the Voters Education Campaign in the total amount of P395,000.
The municipality has reportedly submitted liquidation report of Intelligence Fund to COA Central Office on February 14, 2014.
COA also identified three officials and employees who have unsettled cash advances of P50,000 and above totaling P423,603.35, which may make the concerned officials liable under the terms of the Solana Covenant of the Civil Service Commission, COA and the Office of the Ombudsman.
The employees are Agnes Hoyohoy, Evan Tabotabo and Petronilo Mendoza.
“The failure on the part of the accountable officers to liquidate their cash advances constitutes a ground for the withholding of payment of any money due them as provided for in the COA Circular No. 97-002 dated February 10, 1997,†COA said.
COA has recommended that all officials and employees should immediately liquidate all outstanding cash advances and follow-up from COA Central Office those Intelligence Fund liquidation whose credit advice is not yet issued by the latter.
The municipality informed COA that regular demand has been made with concerned officers and employees while some employees are still on salary deduction to date from their payroll for the refund thereof. — (FREEMAN)