Due to lack of vouchers, documents COA: P30M deals of barangays doubtful

CEBU, Philippines - Close to P30 million worth of various transactions entered into by barangays in the city are not supported with disbursement vouchers and other necessary documents. 

This prompted the Commission on Audit (COA) to cast “doubt” as to the validity, propriety and legality of the transactions.

The COA has transmitted a report to several barangays on the results of the audit on the accounts and operations of barangays for the period ending December 31, 2009. 

In the case of Barangay Pasil, the state auditor said the various transactions totaling to P9.040 million were not supported with approved disbursement vouchers and other supporting papers for the calendar year 2008 to 2009. 

Barangay Suba has also disbursed funds amounting to P5.7 million; Banilad has P3.7 million; Agsungot has incomplete documents for transactions amounting to P221,397; Sawang Calero has P3.757 million; Sirao has released funds with no vouchers amounting to P37,730 and incomplete supporting documents amounting to P457,468; San Antonio has P3.7 million and San Roque amounting to P1.068 million. 

The COA observed that the issuance of checks without necessary disbursing vouchers and supporting documents was among the lapses in the transactions of the barangays. 

“The absence of approved disbursement vouchers and supporting documents will create doubt as to the validity, propriety and legality of the transactions,” the report read. 

The state auditors pointed out Section 4.6 of Presidential Decree No. 1445 and the Policy and Procedure concerning Disbursement by Check of the Systems and Procedures Manual on the Management of Barangay Funds and Property that “claims against government funds shall be supported with complete documentation.”

Furthermore, it stressed that all disbursements shall be covered with duly processed and approved vouchers and payrolls. 

“The purpose of this rule is to ascertain the validity, propriety and legality of the claims,” the auditors said. 

In Sirao, during their examination, it was noted that supporting documents of disbursement vouchers were not sufficient and not properly accomplished. It was also observed that the vouchers were not signed by the designated barangay signatories. 

  The COA already gave them a warning that a repetition will be dealt within accordance with prescribed laws, rules and regulations. 

“We further recommend that the Barangay Treasurer properly accomplish and sign the Disbursement Vouchers of whatever nature to signify approval and validity of the transactions,” the report said. 

Also, in their examination, the disbursement vouchers were not numbered and dated. 

The COA also recommended to the barangay captains and treasurers that vouchers shall be numbered and shall indicate every supporting document to the claim as required under the systems and procedures Manual for Barangay relative to the proper accomplishment of vouchers. 

In San Roque, the absence of approved disbursement of vouchers and supporting documents made the disbursements of the barangay questionable insofar as the validity, propriety and legality of the transactions are concerned. 

COA has already recommended to the City Accounting Office to withhold the salaries and honorarium of all the officials and employees of the eight barangays, until the supporting documents will be submitted.

If the barangay still fails to submit the documents, COA will then disallow all its disbursements and ask the barangay officials to refund the amount already disbursed.

A notice of disallowance will be issued to the barangay involved, after the annual audit report (AAR) will be delivered by the barangays.

From the receipt of the notice of disallowance, the barangay will be given at least six months to file their motion for reconsideration or an appeal in accordance with Republic Act (RA) 9184 or the Government Procurement Reform Act (GPRA).

If the barangay will not file a motion for reconsideration, the disallowance will become final and executory. 

In order to prevent committing the same mistake, COA recommended to the barangay captains that all claims against the barangay funds must be covered with duly approved disbursement vouchers and supported with complete documentation to evidence the actual disbursements. 

Also, the treasurers were reminded to exercise utmost diligence in the performance of their disbursing function.—/NLQ (FREEMAN)