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Saturday, July 22, 2006
COA raps Lapu-Lapu City for P5M 'ghost' claims, P10.2M unliquidated CAs
By Jeanette P. Malinao
Sun.Star Staff Reporter
With Oscar C. Pineda
MAYOR Arturo Radaza of Lapu-Lapu City failed to liquidate more than P8 million in 2005, or the bulk of the P10.2 million in unliquidated cash advances that auditors listed in their report on the city's operations last year.
The Commission on Audit (COA) also questioned the City for recognizing almost P5 million in liabilities in 2005 "despite the non-existence of claimants, non-delivery of goods and non-rendition of services."
In the COA report Sun.Star Cebu obtained yesterday, Radaza was highest in the list of officials and employees who failed to liquidate cash advances, with two items of P4 million each and another for P35,912 that was incurred in 2004 yet.
Lapu-Lapu City Accountant Buenaventura Igot, when called by Sun.Star Cebu, said the records on Radaza's cash advances are confidential.
"For the liquidation, we go straight to the COA in Manila," said Igot.
But when asked what law or rule provides for the practice of liquidating "confidential" cash advances with COA's head office, he failed to specify.
He said the mayor already liquidated the amount stated in the COA report, but after 2005. He could not say when exactly.
Auditors recommended for the City to require all officials and employees to liquidate existing cash advances. They also urged the city accountant "to observe strictly" the regulations for cash advances.
"It was noted that the unliquidated balance of disbursing officers was reduced...due to the overpayments incurred by two disbursing officers. With the existence of overpayments, it appears that personal funds of the disbusing officers were used to pay government obligations and that the City Government is indebted to its disbursing officers," the report read.
As for the P4.7 million in liabilities that were recorded even without claimants, goods delivered or services rendered, Igot said these are still "anticipated payables."
He explained that these are purchase orders and purchase requests that have yet to be delivered and remain unpaid.
"Kon di man gud namo ni himoon, dili mabayran ang among mga gipang-order," Igot told Sun.Star Cebu. (If we don't do that, we can't pay for the things we ordered.)
This has been a practice since he assumed office two years ago but because COA pointed this out as wrong, he said they will not do it again.
He also explained that the amount accumulated to millions because all departments made their own estimates "to anticipate future payments."
There are no listed claimants or creditors, he said, as they could not yet identify them at the time they anticipate payments.
He partly blamed department heads, who submitted anticipated payments without identifying the goods and services to be delivered.
Igot admitted that this is not proper, as COA rules state that only delivered goods must be paid for and reflected in the accounting books.
He said they will just find other ways to settle their accounts with suppliers.
In the report, COA also cited several deficiencies in the city's accounting entries, such as misclassification of items and understatement or overstatement of some entries.
COA also said that the City granted financial assistance to nongovernment organizations (NGO) at P5.3 million, but charged these to donations, contrary to COA rules.
Rules provide that any aid given to NGOs must be recorded "in the nature of cash advance, subject to liquidation" since these are entrusted funds to the NGO for the implementation of specific projects.
For Bisaya stories from Cebu. Click here. (July 22, 2006 issue)
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