Mandaue City incurs P10.2M unliquidated cash advances

The Commission on Audit (COA) has asked the Mandaue City Government to liquidate cash advances for travels, special purpose, intelligence and confidential funds amounting to P10.2 million.

COA, in its 2017 audit report, said that out of the total balance of P26 million, liquidation reports on intelligence and confidential funds totalling P15.8 million have been submitted to its central office, leaving an actual unliquidated amount of P10.2 million.

“The number of days delay in liquidating these cash advances ranged from one to 2,036 days or five years and six months thus exposing government funds to possible loss or misapplication, such as depositing the unused cash advances in the personal account of the accountable officer and gaining interest for it before it is finally returned or refunded,” read the report.

Due to the non-liquidation of cash advances, COA said travelling expenses (if travels were indeed undertaken) and project expenditures (if special purpose cash advances were spent as intended) were not recognized as incurred. The City Administrator already endorsed to the City Legal Office the list of functionaries who failed to liquidate their respective cash advances to initiate legal action.

COA has recommended that the City Mayor direct all accountable officers to fully liquidate their cash advances immediately for the longoutstanding accounts and henceforth, enforce strict liquidation at yearend pursuant to COA Circular No. 97-002 dated February 10, 1997.

Otherwise, COA recommends for the accountant to withhold the salary of the accountable officers. COA also requested for regular update on actions taken by the City Legal Division.

As to deceased employees with unliquidated cash advances, COA further recommended that the City Accountant make a request for writeoff of the account.