COA questions P35M payables in Toledo

CEBU, Philippines - The Commission on Audit has found questionable entries in the financial operations of Toledo City for 2013.

State auditor Herma Serbial reported that the city’s accounts payable amounting to P35 million “were not supported with a list of valid claimants.” In fact, P17.9 million of it remained outstanding for over 10 years already and was not reverted to unappropriated surplus in violation of Section 98 of the Presidential Decree 1445 and DBM-COA Circular No. 99-6.

Sebial recommended that the city “reassess and enhance” the internal controls set for the process flow and recording of payables and observe strictly the pertinent provisions of the New Government Accounting System Manual with regards to recognition, monitoring, and control of payable accounts.

COA also recommended that the city accountant implements the necessary accounting entries “to revert prior years’ accounts payable where no actual claims, whether administrative or judicial, have been filed.”

It was also noted that most of the prior years’ recommendations were not implemented. In fact, of the 52 audit recommendations, only 11 were implemented, 26 were partially implemented and 15 were not implemented at all.

Meanwhile, the city’s cash advances for travel and special purposes granted to officers and employees amounting to P4.8 million had remained unliquidated as of December 31, 2013.

The state auditor said this exposed the unexpended amount to “risks of lose or misuse and depriving the government from the use thereof for other important projects.”

Section 5.7 of COA Circular No. 97-002 states that when a cash advance is no longer needed or has not been used for a period of two months, it must be returned or refunded immediately to the collecting officer, or fully liquidated (Section 5.8) at a given time.

COA also noticed that there were cash advances dated as far as 2009. The state auditor warned that failure of the accountable officer to liquidate outstanding cash advance shall constitute cause for the filing of malversation charge under Article 217 of the Revised Penal Code.

COA said the suspension of salaries of erring accountable officers shall be ordered by the auditor concerned to the proper agency through the head of the agency, and appropriate administrative proceedings shall likewise be instituted.

COA found out that of the 27 accountable officers who did not settle their cash balances, four were already deceased: Teofario Nunez, P74,827; Filomino Plaza Jr., P446,762.34; Ricardo Rafols Jr., P131,036.73; and Basilio Barcenas, P68,680.

The rest were already separated from government service making it impossible for them to liquidate. Of the 27 officers, five are still in service as of December 31, 2013.

The unliquidated cash advances also included P3.2 million from the confidential/intelligence fund of the mayor. Former mayor Aurelio Espinosa has P3M unliquidated cash advances, while incumbent Mayor John Henry Osmeña has P150,000. Special disbursing officer Justin de Jesus has P100,000 unliquidated cash advances.

COA ordered these officers to furnish the audit team a copy of the documents for liquidation. (FREEMAN)