Saturday, August 23, 2008 COA raps Capitol on cash advances
CAPITOL officials and employees were granted their cash advances despite the failure to liquidate at least P16 million in previous advances last year, state auditors said.
Likewise, the Commission on Audit (COA) 7, in its annual report, said that the Cebu Provincial Government failed to monitor the implementation of Capitol-assisted
projects in various towns.
Auditors said that the Capitol’s release of additional advances even if previous ones were still unaccounted for violated the COA circular on the granting and use of cash advances.
During their exit conference, Capitol officials explained that of the P16 million, liquidation documents for some P10 million in Gov. Gwendolyn Garcia’s intelligence funds
were already submitted to the COA central office.
However, state auditors observed that the liquidation documents were sent in November 2007, when the intelligence fund was released sometime in May and June 2007
yet.
Under the law, the accounting officer should require the liquidation of cash advances for salaries and wages within five days into each month’s pay period.
Accounted
Advances for operating and field expenses should be liquidated within 20 days after the end of each year. Official travel advances must be accounted for within 60 days of the employee’s return from a foreign trip and within 30 days for local trips.
Salaries may be withheld and sanctions imposed on those who fail to liquidate their cash advances.
“The period of liquidation of the cash advances was not strictly observed,” the COA said in its audit report, “even if the purpose for which these were granted has long been completed.”
Auditors also found out that salary deductions were recorded for Capitol officials and employees who are no longer in service.
COA also asked why the custodian did not reveal the “nature” of some P348,444 in cash advances and P128,000 in petty cash releases.
Gross neglect
Citing a resolution of the Civil Service Commission, auditors warned that the accountable officer who fails to liquidate cash advances within the prescribed period may face an administrative charge for gross neglect of duty.
State auditors asked Governor Garcia to instruct all Capitol officials to strictly observe the COA memo-circular on cash advances and liquidation.
In the same audit report, COA urged the Provincial Government to strictly enforce the monitoring of projects funded by the Capitol in various towns.
This came after COA 7 found out that the Provincial Planning and Development Office (PPDO) told Governor Garcia and various towns that the project accomplishment or status report was only a “supporting document” for the release of aid.
“Had the submission of the accomplishment report or status on the implementation of the project been made a requisite” before the assistance was approved, the Province could have validate that the funds were used for the correct purposes, the COA said.
Engr. Adolfo Quiroga, PPDO chief, insisted his office monitored the implementation of Capitol-assisted programs.
He said that the PPDO sent a letter to the Pre-Audit Section of COA, informing that a particular town or village still assistance due for liquidation.
COA 7 asked Quiroga to update his monitoring of project implementations.
Auditors also urged the approving officer to require the submission of the status report on the use of previous financial assistance, before additional funds are released. (GMD)
