Thursday, July 03, 2008 COA: Breakdown in control, inefficiency at Cebu City Hall
THE Commission on Audit (COA) noted a possible “internal control breakdown and administrative inefficiency” at the Cebu City Hall in the operation and maintenance of petty cash funds and special cash advances.
COA blamed this on City Hall’s failure to comply with Electronic New Government Accounting System (e-NGAS) provisions, which also resulted in deficiencies incurred by liquidating officers and delayed reimbursements of shortages by collectors.
Meanwhile, the City Government’s P2.6 million financial assistance to several mountain barangays for the Association of Southeast Asian Nations (Asean) summit remains unliquidated even after 18 months.
26 barangays
The amount represented the P100,000 given to each of the 26 mountain barangays. They were supposed to hold nightly activities during the days of the summit to keep constituents from going downtown.
Mayor Tomas Osmeña adopted the strategy to minimize the presence of people in the urban area to better able secure the delegates.
Guidelines
“The failure of the barangays to submit liquidation documents precluded this office from ascertaining of the actual expenses incurred to the above guidelines on the use of Pagcor funds,” the COA said.
City Accounting Office Officer-in-charge Marietta Gumia told the audit team that she already followed up barangays to liquidate the amount.
“So far, none has been able to complete the documentary requirements for liquidation,” the COA said.
On the petty cash funds and special cash advances, COA said accountable officer did not maintain cash books, thus, “his cash accountability for each fund as of a given date cannot be determined.”
The petty cash voucher was also undated and not prenumbered and not signed by the immediate supervisor as supposedly required.
Accountable officers were told to each come up with cash books for cash in treasury, cash in bank and cash advances.
Deficiencies were noted during a Nov. 17, 2007 examination of cash and accounts of liquidating officer Esterlita Garrido.
There was a P90,000 “over-recording” in the report of collections and deposits (RCDs), and “under-remittance” of P10,145 by two collectors in the collections.
Trust
In the deposits, there was an over-recording of P215,0000, and under-recording of P188,000.
COA said collectors incurred shortages in remittances but these were assumed by Garrido when she signed the RCDs.
“In the cash examination reports of the collectors, it appeared that they had fully remitted all their collections intact to the liquidating officer,” state auditors said.
Interviewed by Rodriguez’s team, Garrido explained that she signed the documents without verification “due to her trust of the reviewers’ initials below her name.”
The collectors, though, promised to pay for the shortages.
“Reconciliation of the encoded collections… should be continued and immediate restitution of the shortages noted should be sought from the concerned collectors without prejudice to administrative sanctions, if warranted,” the COA said.
COA also noted that cash books did not reflect P72.8 million in deposits. (RHM)
