Tuesday, September 02, 2008 COA scores town officials
ILLEGAL extra cash gifts, failure to conduct a complete physical inventory of properties and unliquidated cash advances of town officials and workers last year were among of procedural lapses discovered by state auditors on Compostela town.
The Commission on Audit (COA) 7, in its annual report, ruled that the additional incentives given to town workers and employees in 2007 totaling to P798,000 exceeded the 55 percent allowable limit on personal services for a fourth class municipality as provided in a COA budget memorandum circular.
But Compostela officials defended the additional incentives, saying the supposed “excess” was computed and included in the appropriations for 2007.
The municipal government granted P10,000 each to its officials and workers on top of the “regular cash gift” of P5,000 each.
However, auditors said the municipality had exceeded the limit on the appropriation for personal services by over P1 million.
“Hence, the grant of additional benefit at P10,000 each to the personnel of the municipality is in violation of Department of Budget and Management circular 2007-54,” COA 7 stated in its report.
State auditors asked concerned town officials and employees to refund the amount.
Likewise, auditors also urged the municipality to coordinate with the Provincial Finance Committee before disbursing funds “to avoid disallowances in the post-audit.”
COA 7 also called the attention of the town officials for failing to conduct a complete physical count of property, plant and equipment worth more than P56 million last year.
“The conduct of physical inventory is an indispensable procedure not only for checking the integrity of property custodianship and determining the existence and valuation of all the properties and equipment of the municipality but also as basis for the reconciliation of property amounts recorded in the books,” COA’s report said.
The non-submission of the town’s inventory report or maintenance of adequate property records violated provisions of the New Government Accounting System Manual, state auditors said.
“As a result, the validity, existence and condition of the assets could not be ascertained,” they added.
In its reply to COA 7, the municipal treasurer explained that they failed to conduct an inventory of properties since the inventory committee was not able to finish the inventory in 2007.
The town only submitted the results of the inventories for 2005 to 2006.
Auditors asked the town’s inventory committee to conduct a complete physical inventory of all the town’s properties every year.
The municipal government was also asked to submit an inventory report to the local chief executive and the town’s auditor.
COA 7 also reminded the town officials of their unliquidated cash advances worth P2.6 million.
“Records showed that cash advances totaling P2,631,290.89 remained unliquidated as of Dec. 31, 2007,” COA 7 said.
Auditors also questioned the granting of cash advances worth more than P6 million to Lorenzo Almodiel, the town treasurer, even if he still failed to liquidate cash advances in the previous months.
Auditors asked the concerned officials and employees to settle their cash advances.
Otherwise, COA 7 said the municipal government must withhold money due to them or institute other sanctions “deemed necessary.”
“Proper monitoring by the accountant should be made to see to it that new cash advances are not granted to officials and employees with outstanding cash advances,” auditors said.
Sun.Star Cebu tried but failed to get a comment from Mayor Ritchie Wagas on COA 7’s findings. (GMD)
