By: Gerome Dalipe
About P7.97- million in cash advances granted to officials and employees of the Iloilo City Hall for their travel and special purpose from 2012 to 2018 remain unsettled.
In its 2018 annual audit report, the Commission on Audit (COA) said the officials’ cash advances are still unliquidated for the past eight years as of Dec. 31, 2018.
The practice runs contrast to Presidential Decree 1445 and of COA Circular 2016-005, which provides for the guidelines and procedures on the write-off of dormant receivables accounts, unliquidated cash advances and fund transfer.
“Thus, it resulted in the understatement of the related expense accounts and exposed government funds to the risk of possible misuse and loss,” the auditors said.
In their report, the auditors recommended to the city accountant to require the accountable officers to settle their cash advances.
This is in compliance with Section 89 of Presidential Decree 1445 and COA Circular 97-002 for timely recognition of expenses in the books of accounts.
The city accountant was also tasked to regularly send demand letters to those who failed to settle their accountability within the required period.
Likewise, cash advances granted to officers and employees in 2011 amounting to P475,607 remained unliquidated.
This, despite the issuance of COA Circular 2012-004, thus affecting the fair presentation of the affected accounts in the financial statements.
The auditors urged the city accountant to regularly issue demand letters to all employees with outstanding cash advances requiring them settle their unliquidated cash advances.
The city mayor was also urged to strictly adhere with the guidelines and procedures on the request for write-off of unliquidated cash advances.
This is in compliance with COA Circular 2016-005 for a fair presentation of account balances in the financial statements.
