LGU and GovernanceAlfonso Municipality's Manual Payroll System Alarms COA

Alfonso Municipality’s Manual Payroll System Alarms COA

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The Commission on Audit (COA) has raised concerns over the Municipality of Alfonso, Cavite‘s continued reliance on a manual cash advance system for disbursing wages to its Job Order (JO) and Contract of Service (COS) workers. 

Despite having an automated payroll system in place for regular employees through the Land Bank of the Philippines (LBP), the municipality processed payments for JO and COS workers totaling PHP24,626,803.25 in 2022 using cash advances, COA has reported.

The COA’s audit revealed that the Municipal Treasurer was not considering the Automated Payroll System for JO and COS Workers due to the short-term nature of their contracts. This decision has deprived the municipality of the benefits associated with automated systems, such as prompt and efficient processing of wages, reduced risk of loss and misappropriation, and better control and protection in cash handling.

COA said the manual system has also placed a significant burden of cash accountability on Disbursing Officers, which could have been alleviated with automation. 

COA has recommended that the Municipal Mayor, Randy Salamat, instruct the Municipal Treasurer and other concerned officials to take the necessary steps to integrate the payment of wages for JO and COS workers into the automated payroll system.

In response to COA’s findings, the Municipal Treasurer and the Human Resource Management Office (HRMO) – OIC have begun discussions to implement automation for JO and COS workers whose contracts will be renewed every six months. They plan to submit a Master List to the bank and direct the workers to create accounts immediately after their contract renewal, with HRMO’s assistance.


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