COA: Barangays' funds put at risk

CEBU, Philippines - Exposing public funds to misappropriation or misuse, and risking the loss of government money.

These are among the findings made by the Commission on Audit (COA) on some disbursement practices and transactions made by Barangays Suba and San Roque in 2009.

In San Roque, for example, cash advances for honoraria exceeded the net amount of payroll, which is contrary to auditing rules.

The state auditor found that San Roque made cash advances that were not equal to the net amount of payroll for a pay period, resulting in a floating cash of P15,420.33.

The Manual on the Management of Barangay Funds and Property states that the cash advance shall be equal to the net amount of the payroll corresponding to the pay period.

 Upon verification of San Roque’s transactions, COA learned that the cash advance made by the barangay treasurer for the honoraria of barangay officials exceeded the payroll for the months of January to March.

The excess amount, however, was deducted in the next month but still, COA warned it exposes government funds to the risk of loss.

“The practice of barangay treasurer in drawing cash advances in excess of the net amount of payroll exposed public funds to misappropriation or misuse,” the report read.

Meanwhile, in barangay Suba, cash advances amounting to some P105,000 remain unliquidated.

In the report, councilor and now Suba barangay captain Nino Resurreccion, former councilman Nicholas Malazarte Jr. and incumbent councilmen Angelita Yburan, Adriaa Mahusay, Edgar Bacalso, Genaro Patalinghug and Elinerio Ledesma were listed as having unliquidated funds.

Also, expenses for the travel of the barangay officials were not approved by then barangay captain Joel Sable.

In a separate interview with The FREEMAN, Suba secretary Dianna Mahusay said the incumbent officials started paying their unliquidated cash advance for the unapproved trip at P1,000 per month. — (FREEMAN)