COA Uncovers P12.6-M Outstanding Payables in LGU Kawit, Cavite

KAWIT, CAVITE – A recent Commission on Audit (COA) report on the Local Government Unit (LGU) of Kawit, Cavite has revealed questionable P12.6 Million outstanding payables and guaranty/security deposits.

The report highlights two specific accounts: Accounts Payable amounting to P8,715,571.50 and Guaranty/Security Deposits Payable amounting to P3,923,713.72.

These amounts have been outstanding for over two years, casting doubt on the validity and reliability of the balances of these accounts at year-end, COA said.

According to COA, the money could have been lost since there were no financial documents provided by LGU Kawit.

The report cites non-compliance with legal requirements as a key issue. According to Section 40, Book 6 of the 1987 Administrative Code of the Philippines, no obligation shall be certified as accounts payable unless it is founded on a valid claim supported by sufficient evidence and proper authority for incurring the obligation. Certification for non-existent or fictitious obligations or creditors is considered void.

Furthermore, Section 4(6) of Presidential Decree (PD) No. 1445 mandates that claims against government funds must be supported with complete documentation. Section 98 of PD No. 1445 allows the Commission to revert unliquidated balances of accounts to the unappropriated surplus of the general fund.

The COA report also revealed that payables totaling P12,639,285.22 were outstanding for more than two years and had not been reverted to the unappropriated surplus of the general fund. These Accounts Payable pertained to Calendar Years 2004, 2007, and 2019 and remained unclaimed as of December 31, 2021.

The COA recommends that the Municipal Mayor Angelo Aguinaldo instruct the Municipal Accountant to cause the immediate reversion of the unappropriated surplus of the general fund for the Accounts Payable totaling P12,639,285.22 that remained outstanding for more than two years, supported by complete documentation.

COA said the Municipality should also inform, in writing, the concerned suppliers and contractors about their remaining unclaimed/unappropriated surplus in the general fund and ensure that proper claims are made within a reasonable period. Reports said payments were allegedly made to a Kawit politician instead of remitting the money to the municipal treasury.

COA said the report underscores the importance of proper documentation and compliance with protocols when handling government funds.

COA added that the outstanding balances should be addressed to ensure transparency and accountability in the management of public funds.