CEBU, Philippines – The Commission on Audit has said an adequate internal control system is missing in the local civil registrar's office in Mandaue City when it comes to collecting cash, which is tantamount to allowing unscrupulous individuals the opportunity to commit irregularities.
A review of the internal control system intended for the handling of cash at the local civil registrar's office showed that the designated collecting officer of the department did not perform her assigned task, instead she entrusted the issuances of receipts to two sub-collectors who were not bonded and permanent except for one collector.
COA said the office has no file exclusively for transaction request forms filled up by clients.
The filled-up request forms are returned to the requesting persons together with the copies of the documents requested.
COA said the official receipt number, amount, and date paid are reflected only on the specific document that was requested which is given to the requesting party leaving the office without a copy.
It said the sub-collectors are not closely monitored and not regularly rotated in their work assignments.
The COA said no close supervision is done when official receipts are issued because the designated collector is assigned to a different task while the sub-collectors are assigned to their respective responsibilities since January 2009.
An audit observation memorandum has been issued and the department head, in reply, assured that it would comply with the recommendations.
COA has suggested the office install, implement, and monitor adequate internal control systems in collecting cash to ensure that government funds are properly safeguarded against loss or wastage.
A permanent employee should also be assigned as a full-time collector who is properly bonded to collect fees to easily pinpoint responsibility, COA said.
COA also recommends that sub-collectors should be supervised and their work monitored to prevent or minimize the commission of fraud.
Request forms filled up by clients should be detached by the local civil registrar after signing the requested document and this retained in the office as her file for audit purposes and the official receipt number, amount, and date paid should reflect on the request form for easy verification and counter checking of the transactions when necessary.
Moreover, COA has reminded Civil Registrar Office head Flaviana Basilgo that it is her primary responsibility to install, implement, and monitor an adequate system of internal control to safeguard her office's resources, produce reliable accounting data, and promote operational efficiency and effectiveness.
Strong internal control provides accountability for the custody and use of government resources while weak internal controls lead to waste and misuse of government resources and non-accomplishment of objectives, COA said. (FREEMAN)