Town’s accountant not qualified, COA says

MOALBOAL town designated as acting municipal accountant an employee who is not qualified for this position, the 2009 Commission on Audit (COA) report said.

Apart from that, the town’s inventory report of its properties, plants and equipment amounting to P73.4 million contained incomplete information.

The designation of Emelita Estimo, a bookkeeper, as acting municipal accountant violated a circular from the Civil Service Commission (CSC), state auditors said.

Under the circular, employees to be designated should hold permanent appointments to career positions, and can only be designated to positions within the level they are occupying.

Estimo’s position as a bookkeeper is classified as a level one position and only needs sub-professional civil service eligibility.

But the position of a municipal accountant is classified as a level two position and requires a higher degree of proficiency and professional civil service eligibility.

“Considering that the position of the municipal accountant is that of a department head, an incumbent of a position of a lower level such as a bookkeeper may not be adequately equipped with the necessary technical training and experience to be able to effectively handle the responsibilities of a municipal accountant,” said the report.

Sun.Star Cebu called Mayor Inocentes Cabaron but his secretary said he and Estimo were in a meeting in Cebu City.

The town, state auditors noted, conducted a physical count of its properties, plant and equipment last Dec. 31, 2009.

However, the inventory report it submitted last March 26, 2010 contained incomplete information regarding quantity, physical condition, location, and the present custodian of the properties.

State auditors asked the town to reconcile the inventory report and its accounting records to prove the accuracy of the recorded balance of the properties, plant and equipment account.

Under the New Government Accounting System, each town is required to conduct an annual physical count of its properties, plant and equipment and submit the inventory report not later than Jan. 31 of each year.

In the absence of a complete inventory report, state auditors cannot verify the existence of the properties, plant and equipment that are listed in the town’s accounting books.

The COA also noted the town granted cash advances to officials, even though it has yet to liquidate cash advances amounting to P1.7 million.

State auditors asked the town to strictly adhere to the provisions of COA Circular 97-002 and Presidential Decree 1445 on the grant and utilization of cash advances, and to closely monitor the liquidation of cash advances to avoid their accumulation.

The town was able to implement eight of the 17 previous recommendations of the COA, including the one asking the members of the Bids and Awards Committee to refund the honorarium they received in 2005.