THE Commission on Audit (COA) called the attention of the Cebu Provincial Government after more than P47 million in cash advances that were granted to officials and employees remained unliquidated as of 2016.
In its annual audit report, the state audit noted that of the P57.9 million cash advances, only 18.63 percent or P10.8 million was liquidated as of Dec. 31, 2016.
Of the P47.1 million in unliquidated cash advances, P38 million or 84 percent of the cash advances were issued to Capitol officials and employees.
The COA commented that some of the unliquidated cash advances dated as far back as 2005.
Some P5.1 million out of the P47.1 million in unliquidated cash advances became “dormant” or have not been moving for 10 years or more, and where settlement could no longer be ascertained.
Petty cash funds as well as the P30 million in confidential/intelligence funds were included among the unliquidated cash advances noted by the state audit.
Some of the accountable officers who failed to liquidate their cash advances were no longer connected with the Provincial Government.
Of the P30 million intelligence funds, at least P5 million was issued to Gov. Hilario Davide III, while the rest was issued to former provincial treasurer Roy Salubre. Salubre has since been dismissed from the service.
COA Circular 2012-004 stated that officials who failed to liquidate outstanding cash advances on or before Jan. 31, 2013 could face charges for malversation of public funds and violation of Presidential Decree 1445 or the Government Auditing Code of the Philippines.
State auditors recommended to the Province to institute sanctions pursuant to Section 9 of COA’s Circular No. 2012-004 against those employees whose cash advances remained unliquidated despite final demand.
The COA also recommended for the Province to prepare a request to write off some unliquidated cash advances where employees no longer have the chance to liquidate the funds.
In his comment during the exit conference, Provincial Accountant Ramon Dumayac said that his office is doing its best to comply with the regulations governing cash advances.
Dumayac said that the Provincial Accounting Office will send demand letters to all personnel with unsettled cash advances.
This was not the first time COA called the Province’s attention on the P25 million unliquidated cash advances in 2015.