Barangays disburse funds sans supporting documents

CEBU, Philippines - The Commission on Audit (COA) said most of the barangays in the south district of the city disbursed cash funds without supporting documents.

State auditors also discovered that a total of P5-million in one of the southern barangays in were encashed against public funds without the required disbursement vouchers and supporting documents.

The disbursement of public funds without proper documentation and supporting documents was among discrepancies discovered by State Auditor IV Eva Cabrera.

In her consolidated annual audit report of the commission, Cabrera said that most of the barangays, if not all, disbursed cash funds without supporting documents.

“Naa’y usa ka barangay akong nakita nga mi-disburse og P5 million nga wala’y vouchers. If naa man gani wala’y klaro nga supporting documents,” Cabrera said.

COA is conducting an audit of the 30 barangays in the city. 

Cabrera said that was one of the reasons why she asked City Accountant Arlene Rentuza to withhold the honoraria of barangay officials especially of the barangay captains and treasurers last year pending their submission of the vouchers and financial reports supporting their transaction from 2007 to 2009 because of the some irregularities she discovered.

Cabrera, who assumed as city auditor early last year, checked the records of the barangays and discovered they cannot determine “the propriety, validity, authenticity and legality” of the barangays’ transactions for lack of supporting documents.

Cabrera reminded the officials of the barangays, especially the treasurers, that all financial transactions entrusted to them shall be submitted to the city accountant for recording in the journal.

 More than half of the 80 barangays have already complied with the recommendations of COA and have submitted receipts, vouchers and other supporting documents of their respective barangays’ transactions.

 The supporting documents will be included in their records, which they will submit to COA to correct the discrepancies.

 Before the end of the month, Cabrera said she will send the communication and the findings to the barangays concerned to follow the proper procedure on the COA rules.

 “We will give them a copy of our report including its recommendation. We will ask them to submit the necessary documents otherwise we will issue a notice of disallowance to them,” Cabrera said.

 According to Cabrera, the barangays, upon receipt of the recommendation, are given six months to comply before appropriate action will be taken.

Based on COA’s manual, the disbursement vouchers will only be signed by the barangay chairman, barangay treasurer and the barangay appropriation committee chairperson.

Cabrera said the new system would make barangay transactions faster and easier but warned barangay officials not to abuse such privilege, otherwise, they will be held administratively.   (FREEMAN NEWS)