Wednesday, September 03, 2008 Auditors rap Compostela treasurer
REGIONAL state auditors berated Compostela town treasurer Lorenzo Almodiel for failing to deposit tax collections totalling more than P1 million in the town’s bank account last year.
In its annual report, the Commission on Audit (COA) 7 warned that Almodiel’s failure to remit the money to the bank exposes government funds to “risk of loss or misappropriation.”
Auditors also slammed the town government for erroneously charging the disbursement of funds worth over P1 million against the general fund instead of the 20 percent development fund.
Verification by regional auditors showed that Almodiel failed to deposit to the bank his “intact” collection, which resulted in the accumulation of “cash on hand” of P1,603,144.64 as of Sept. last year.
‘Big taxpayers’
Admitting his failure to deposit the town’s collection to the bank, Almodiel, however, explained they were accommodating “big taxpayers” to continue to pay full taxes for the whole year.
Almodiel promised to correct the practice. He said his office will find ways to encourage taxpayers to pay on time.
“We noted during our cash examination that the municipal treasurer still did not religiously deposit intact his collections daily or on the next banking day to its depository bank...located only eight kilometers away from the municipality,” auditors said in their report.
Auditors said undeposited collections reached more than P2,159,644 by the end of 2007.
It was learned that the amount was only deposited to the bank on a staggered basis last Janurary 2008.
Replying to the COA 7 report, Almodiel said he failed to deposit the amount last year since he was on “official travels and field work” and he had little time to deposit the town collection.
But regional auditors complained the town treasurer did not explain why collections were not deposited “intact.”
“As the treasurer, it is his foremost responsibility to see to it that collections shall be safeguarded from loss or misappropriation, thus, in his absence he should have delegated somebody to take charge of the daily deposits of the collections,” auditors said.
Regional auditors asked the town treasurer to promptly deposit his collections “intact and daily” not later than the next banking day.
“He (Almodiel) should also consider authorizing from among the treasury personnel to deposit intact collections remitted by collectors on occasions when he is on official travel or on field work,” auditors said.
COA 7 urged Almodiel not to accommodate late taxpayers, especially on the last month of the year.
“Taxpayers should instead be encouraged to pay on time to avail themselves of discounts and avoid penalties through proper information dissemination so as not to jeopardize the daily remittance and deposit of collectors and the municipal treasurer.”
Disbursements
In the same report, auditors also called the attention of the town government on the erroneous charging of disbursement of more than P1 million against the 20 percent development funds, instead to the general fund.
The amount was spent for utilization of “desirable” socio-economic development and environmental management projects, which is contained in the town’s annual investment plan.
The 20 percent development fund was used for sports development program, P48, 643; peace and order program, P190,000; heritage and tourism promotion, P241,319.92; improvement of municipal bldg., P94,506.75; parks and plaza improvement worth P249,027.
Auditors said the projects “are more general public services in nature” that should be charged to the general fund. (GMD)
