DepEd flagged over P10 billion unliquidated cash advances

MANILA, Philippines — The Commission on Audit (COA) has flagged the Department of Education (DepEd) over the accumulation of unliquidated cash advances (CAs) by its central office (CO) and several regional offices (ROs), which stood at P10.183 billion as of the end of 2022.

“The existence of substantial accumulated unliquidated cash advances is attributable to the lapses in the controls placed by management in the granting, liquidation and monitoring of CAs in disregard of the existing rules and regulations and pertinent DepEd guidelines relative thereto,” the COA said in its 2022 annual audit report on the DepEd.

The COA’s record showed that as of Dec. 31 last year, the DepEd’s CO and 16 ROs have yet to liquidate their CAs past the prescribed period.

The audit breakdown showed that P4.74 billion of unliquidated CAs was for payroll, P2.084 billion was for operating expenses, P1.144 billion was granted to special disbursing officers for various purposes, P166.815 million was granted to officers and employees also for various purposes, while P2.05 billion of the advances was “without specific account details.”

Having the biggest amount of unliquidated CAs was RO 8 with P1.169 billion, followed by RO 4-A with P1.133 billion, RO 6 with P980.527 million, RO 7 with P962.655 million and RO 12 with P913.297 million.

Also listed as having significant amounts of unliquidated CAs were RO 9 with P833.772 million, RO 5 with P790.103 million, RO 3 with 731.27 million, NCR with P696.267 million, RO 2 with P548.851 million and RO 13 with P483.94 million.

Likewise mentioned in the COA report were ROs 1, 11, 4-B, CO and 10 for unliquidated CAs amounting P377.712 million, P219.684 million, P155.583 million, P54.753 million and P503,295, respectively.

The COA said that among the lapses or deficiencies observed by the audit team were the grant of additional CAs despite non-liquidation of previous ones, grant of CAs to accountable officer (AO) and special disbursing officer without proper bond or authority, grant of CAs despite incomplete documentary requirements and liquidation, transfer of CAs by the AO to another personnel and grant of CAs to the AOs in the amounts exceeding the allowed maximum cash accountability.

The state auditor added that the audit team also noted dormant or long-outstanding CAs and that some of the outstanding liquidation accountabilities were due from “retired/ resigned/ deceased/AWOL (absence without official leave)” employees.

Several AOs also failed to refund excess or unused CAs granted to them, according to the COA

Nonetheless, the agency said the DepEd had already agreed to the audit recommendation to “exhaust all possible means to locate the whereabouts of retired/transferred officials and employees with outstanding advances and demand immediate liquidation/refund of their unliquidated cash advances.”

The COA said the DepEd also agreed to “send final demand letters to erring AOs still in active service to settle or liquidate their past due accounts.”

It added that otherwise, the DepEd agreed to impose the appropriate penalties or remedies as provided in the Civil Service Commission Memorandum Circular No. 23, series of 2019.