Tabuelan’s P1.9M unliquidated cash advances hit

CEBU, Philippines - The Municipality of Tabuelan has granted cash advances to officials who failed to liquidate their previous cash advances, violating a Commission on Audit circular.

In its audit report for 2012 operations, cash advances amounting to P1.9 million have not been liquidated and settled, thus expenses incurred out of the cash advance were not recognized and recorded, thereby giving risk in the misstatements of expenses and other related accounts.

Auditing rules state that “no additional cash advances shall be allowed to any official or employee unless the previous cash advance given to him is first settled or a proper accounting thereof is made”.

As of December 31, 2012, advances were comprised of the P1.4 million of municipal treasurer Carmen Ruelan out of the intelligence fund.

Other advances include the P13,201 of Jean Oca, P22,935 of Ramon Arellano, P10,000 each of Joseph Cole, Virginia Montecalvo, Joel Gerona, Celerina Salubre, P400,000 of Ruelan and P100,000 of Lolita Selle.

COA noted that cash advances amounting to P1.4 million for intelligence funds were granted in years 2007, 2008, 2009 and 2010.

Ruelan, to whom the cash advances were granted, however presented to COA certified true copies of the liquidation report of the last four cash advances which were already submitted to COA Central Office.

It was learned from Ruelan that the liquidation for the cash advance granted on March 20, 2007 is still in process due to the absence of the returned/paid check which is allegedly not returned by the bank.

The audit team advised Ruelan to have an authenticated copy of the bank statement showing the paid check of the cash advance and submit the liquidation together with this document to COA Central Office with a written explanation on the delay of the submission thereof.

For the other cash advances granted during the year 2012, COA noted that except for the amount of P30,000 the P400,000 intelligence fund cash advance drawn in October 2012 likewise remain unliquidated as of December 31, 2012.

The rest amounting to P146,136.50 were liquidated after the balance sheet date and the same is appropriately disclosed in the Notes to Financial Statements.

COA recommended that the municipality liquidate immediately the P600,000  unliquidated Intelligence Fund cash advance and follow-up from COA Central Office those liquidation whose credit advice is not yet issued by the latter.

The municipal accountant assured the audit team that they will strictly adhere to the rules and regulations on cash advances.

The Special Disbursing Officer for the Intelligence Fund also assured to submit the liquidation report together with the required supporting documents once completed to the Commission Proper of COA. (FREEMAN)