CEBU, Philippines – The Commission on Audit has found out that the officials and employees of the Municipality of Naga, Cebu, have incurred increasing unliquidated cash advances from 2008 up to 2009.
Their annual audit report for 2009 shows that the amount of P7.2 million remained unliquidated as of December 31, 2009, this is aside from the unliquidated cash advances amounting to P7 million as of December 31, 2008.
Section 4.1.3 of COA Circular No. 97-002 specifically provides that "a cash advance shall be reported as soon as the purpose for which it was given has been served."
COA's verification showed that these cash advances were granted to the officials and employees for payment of traveling expenses, registration fees for seminars and trainings, expenses for LGU Family Day, Teacher's Day and intelligence fund expenses of the mayor.
"Letters of Demand had been issued to the officials with outstanding unliquidated cash advances, however these still remained unliquidated as of December 31, 2009," the state auditor said.
Likewise, cash advances to the Disbursing Officer for payment of salaries and wages of officials and employees were granted more than the actual amount to be paid, thereby resulting to excess cash advance.
Section 4.2.1 and 4.2.2 of said COA circular states that "the cash advance shall be equal to the net amount of the payroll for a pay period; and that the cash advance shall be supported by payroll or list of payees with their net payments."
During the conduct of cash examination, COA noted that cash advances granted to the disbursing officer were drawn in excess of amounts to be paid.
However, the municipal accountant stated that the requested amount prepared by the Internal Control Unit was inadvertently or erroneously summed up resulting to excess withdrawal.
Section 4, Rule 2 of the Civil Service Commission Resolution No. 040676 provides that failure of the Accountable Officer concerned to liquidate cash advances within the periods prescribed after formal demand shall constitute a prima facie case of gross neglect of duty as defined under existing Civil Service Law and Rules.
Executive Order No. 298 requires the liquidation of cash advance for local travel within thirty days from return to permanent station.
Concerned officials and employees are advised the prompt settlement and liquidation of cash advances within the prescribed period and the granting, utilization and liquidation of cash advances should be strictly observed. (FREEMAN)