THE Commission on Audit (COA) has given the Cebu City Government a qualified opinion in its annual audit report for 2016. However, several exceptions were noted, including unliquidated cash advances and unrecorded disbursements, among others.
In its annual audit report, COA said that P42.2 million cash advances remained unliquidated even if these had been used.
If the City can’t liquidate the amounts, COA recommended that salaries and payment of any money due to the accountable officers will be withheld pursuant to their circular no. 97-002.
Of the P42.2 million, some P40.4 million were spent for special purposes including the street lighting project, relief distribution and sports development in the barangays, among others.
The remaining unliquidated amount was used for local and international travel of some appointed officials and employees in the previous administration, or during the term of former mayor Michael Rama.
“Review of the schedule of cash advances also disclosed that 57.91 percent of the unliquidated cash advances have been outstanding for over a year. These were still unliquidated even if the purpose for which these were granted may have already been served,” a portion of the COA report said.
The annual audit report for last year was prepared by the audit team headed by Cymbeline Celia Uy and Maria Daisy Bercede who served as team leaders.
The Cebu City Government, for its part, said that cash advances were incurred during the past administration, particularly in the year 2011 to early of 2016.
Mayor Tomas Osmeña instructed the City Accounting Office to notify and remind the accountable officers to settle their cash advances.
Demand letters were sent to the accountable officers last June 2, 2016. (RVC)