COA stops Bogo cash aid

The Commission on Audit has stopped the City of Bogo from granting financial assistance to Solid Bogo Business Association for its failure to liquidate the previous cash aid amounting to P1,650,000.

As of December 31, 2013, the City released financial assistance to SBBA in the amount of P1,600,000 for social and cultural activities, as stipulated in a memorandum of agreement both parties entered into, and another P50,000 for the construction of a fire truck garage.

In its 2013 audit report, COA observed that there was neither a proposal nor an application for funding by the SBBA, but only a mere budget proposal signed by Bogo Fiesta Committee 2013 chaired by Manuel Sanchez, who is not an officer of the association.

One of the terms of reference of the MOA did not state the specific period when to liquidate the funds.

COA said that within 60 days after the completion of the project, the non-government organization or people’s organization shall submit the final Fund Utilization Report certified by its accountant and approved by the chairman together with all other supporting documents.

The City is now in the process of working out the deficiencies cited. It claimed that at present, only P50,000 has not been liquidated.

Meanwhile, COA also asked the City to direct all officials and employees to settle all unliquidated cash advances, especially those granted in the prior years, amounting to P12.8 million.

“Failure of the accountable officer to liquidate his cash advance within the prescribed period shall constitute a valid cause for the withholding of his salary and the institution of other sanctions,” COA said.

COA disclosed that additional cash advances were granted eventhough the previous cash advances have not been settled.

Among the unliquidated cash advances is the P9.3 million amount of Intelligence Fund.

According to COA, interviews revealed that liquidations for cash advances granted for Intelligence Fund were not followed up at COA Central Office and no demand letters were issued by the City Accountant for long outstanding cash advances.

COA recommended that the City Accounting Office refrain from granting additional cash advance if the previous one has not been liquidated yet and to adhere strictly to the rules and regulations, otherwise, administrative and/or legal sanctions shall be imposed on the liable officials and employees.