COA orders GOCCs, government agencies to liquidate CAs

CEBU, Philippines - The Commission on Audit has ordered all government agencies, government-owned-and-controlled corporations and all local government units for an immediate liquidation and settlement of all cash advances that remain outstanding as of December 31, 2011.

COA issued Circular 2012-004 as a final demand to all accountable officers or employees of offices that made the unliquidated cash advances.

COA gave all accountable officers until January 31 next year to liquidate the cash advances.

“Audit reveals that unliquidated cash advances in government have reached a staggering sum in the aggregate, and despite repeated demands and requests for liquidation, the advances have remained unliquidated,” COA said.

Pursuant to the circular, Acting City Accountant Diwa Cuevas informed all department heads and accountable officers to submit their liquidation of their office’s cash advances before January 31 next year.

She warned, quoting Circular 2012-004, that those who will fail to submit their liquidation reports shall be charged for malversation under Article 217 of the Revised Penal Code.

Accountable officers shall also face charges for failure to liquidate under Article 218 of the RPC.

They may also face criminal prosecution for the violation under Section 128 of Presidential Decree No. 1445.

“The suspension of salaries of erring accountable officers shall be ordered by the auditor concerned to the proper agency official through the head of the agency. Appropriate administrative proceedings shall likewise be instituted,” Cuevas told all departments.

Under the law, cash advances are allowed for payment of honoraria and similar payments to employees, operating expenditures for special projects and activities and for special purpose and time bound activity like cultural and athletic activities.

Rules however provide that cash advances must be liquidated within 20 days from the accomplishment of the purpose.

All cash advances are required liquidation by COA to ensure that taxpayers’ money are properly spent or protected against wastage. — (FREEMAN)