COA Flags Irregular Cash Advances in Alfonso, Cavite

In the most recent audit report, the Commission on Audit (COA) highlighted a significant breach of financial regulations within the local government unit (LGU) of Alfonso, Cavite.

The report revealed that several Accountable Officers (AOs) were granted cash advances exceeding their maximum cash accountability limits, as set by COA Circular No. 97-002 and Treasury Circular No. 02-2009.

This practice has raised concerns over the potential risk of the government not being fully indemnified in cases of loss, theft, or misappropriation, COA warned.

According to the COA Circular No. 97-002, AOs with a total cash accountability of P2,000.00 or more must be bonded, with the bond amount dependent on the total accountability as determined by the agency head. Additionally, Treasury Circular No. 02-2009 outlines the procedures for bond application, renewal, and cancellation, emphasizing that any increase in accountability should correspond to an increase in bond premium.

The audit uncovered that three AOs handled cash well beyond their approved bond amounts, with one officer handling cash advances up to P280,000.00, far exceeding the maximum cash accountability of P21,000.00, COA said.

LGU Alfonso Municipal Treasurer explained that the excess cash advances were a result of attempts to avoid overlapping advances that had not been liquidated.

COA has recommended that Municipal Mayor Randy A. Salamat instruct the Municipal Treasurer and Accountant to either increase the fidelity bonds of the AOs to cover their cash accountabilities adequately or limit their cash advances to the maximum amount covered by their bonds.

In response, LGU Alfonso has committed to addressing the issue, with plans to include the budget for increased fidelity bonds in the upcoming supplemental budget.

This situation underscores the need for stricter controls and adherence to financial regulations to prevent similar occurrences that could jeopardize public funds, COA said in its report.