COA reminds brgy officials to submit papers for cash advances

CEBU, Philippines - The Commission on Audit has reminded the barangay officials to ensure that project proposals are among the documents submitted to support cash advances.

The reminder was issued after city accountant Marietta Gumia and the barangay officials of Talamban sought clarification in the granting and utilization of cash advances for prizes and other activities for fiesta.

Gumia earlier discouraged cash advances for barangay officials for fear that they might not be able to liquidate after the activities. Unliquidated cash advance is one of the reasons why some barangays fail to close their books of accounts at the end of the year.

According to COA, cash advances are allowed under Circular No. 2009-002 for as long as rules and regulations that safeguard public funds are strictly followed, including pre-audit.

A pre-audit is the examination of documents supporting a transaction or series of transactions before these are paid for and recorded. Auditors are required to go over the transaction to make sure it is consistent with audit and accounting rules, even before public funds are released from the government’s coffers.

Barangays have been complaining over series of tentative suspension from the city accounting on their cash advances for prizes in their activities.

But city accounting division chief Agnes Tabares said that no additional cash advances shall be allowed to any official or employee unless previous cash advances are accounted. – (FREEMAN)