P6.6M in advances yet to be liquidated

CEBU, Philippines – The Commission on Audit has directed Mandaue City government to file legal actions against employees and officials who were responsible for the P6.6 million cash advances that remain unliquidated.

"We recommend that the city accountant and the heads of department/office enjoins (sic) all officials and employees to observe COA Circular No. 2012-001 and Section 89 of (Presidential Decree) 1445, and to enforce the appropriate administrative and/or legal sanctions provided under COA Circular 2012-004," read COA's report on Mandaue City's 2014 financial operations.

Based on its audit, COA noticed that the city had cash advances for travels and special purposes amounting to P6.6 million, a huge chunk of which were dated over 10 years. The audit body said this is contrary to COA Circulars No. 2012-001 and 2012-004 and Section 89 of PD No. 1445.

Section 1.2 of COA Circular No. 2012-001 "requires liquidation of cash advances for foreign travel within 60 days after the travel and as soon as the purpose has been served for special purpose cash advances.”

Records showed that P309,887.50 cash advances were from foreign travels, and were incurred more than two years.

For local travels, P1.2 million cash advances were also not liquidated, P650,331.60 of it remained so more than one year since it was used.

For "special purpose," the amount bloated to P5 million, P3 million of which was made more than a year, while P1.9 million was made more than two years.

COA said it was also noticed that eight employees were "consistently" granted cash advances even if they were not able to liquidate their previous cash advances.

"The unliquidated cash advances of these employees have an average of P144,000," COA said.

"Due to the non-liquidation of cash advances, travelling expenses (if travels were indeed undertaken) and project expenditures (if special purpose cash advances were spent as intended) were not recognized as incurred," it added.

The city, COA said, had already sent demand letters to liable employees and officials.

During the exit conference, COA said some of the accountable officers are already dead, hence COA told the city to secure death certificates of the deceased and that they request that their liabilities be written off. (FREEMAN)