P12.8M unliquidated cash advances in Bogo

CEBU, Philippines - Close to P13 million cash advances granted to Bogo City officials and employees in 2013 had remained unliquidated at the end of the year.

In its annual audit report for 2013, the Commission on Audit said a total of P12.8 million cash advances were not liquidated.

State auditor Cymbeline Celia Uy, in her audit report submitted last year, said the cash advances have accumulated due to the "continued laxity in the enforcement laws, rules and regulations in the grant, utilization and liquidation of cash advances contrary to COA Circular No. 97-002."

"We recommend that management direct all city officials and employees to settle all unliquidated cash advances, especially those granted in the prior years. Further, we recommend that the city accounting office refrain from granting additional cash advance if the previous one has not been liquidated," the COA report read.

The state audit body also recommended that city officials and employees "adhere strictly" to the COA rules and regulation when it comes to utilization and liquidation of cash advance to avoid administrative or legal sanctions.

The same audit report also took note of a lot purchase amounting to P3.5 million without complete supporting documents in violation to Section 4(6) of Presidential Decree 1445. The city bought the property from T.S. Paulin and Sons Inc.

COA has recommended to the city accountant "to ensure that paid expenditures be supported with complete documents as required by law otherwise disbursements without these shall be disallowed."

The state auditor likewise noticed the "repeated failure" of the general services office to conduct physical inventory of fixed assets of the city amounting to P445 million or 69 percent of the city total assets for 2004 to 2013.

With the absence of the inventory records of the accounting division and GSO, it resulted in the "difficulty in ascertaining the validity, existence, ownership, condition and valuation of properties and equipment, thereby the various property, plant and equipment account balances cannot be relied on," COA said.

"We recommend that the city mayor direct the acting general services office to conduct annually the physical inventory of fixed assets and prepare an inventory report thereon. Further, we recommend to require the GSO to maintain Acknowledgement Receipt of Equipment (ARE) and equipment ledger cards," COA stated in the report.

The audit agency also recommended that the city mayor instruct the city accountant to maintain perpetual inventory records and reconcile the balances between the general ledger and physical inventory report of the GSO.

Of the 23 recommendations contained in the other year's annual audit report, COA said only three were implemented, nine were partially enforced while 11 were not implemented at all.— (FREEMAN)