COA Finds P5.5-M, 99 Unreleased Checks in Kawit, Cavite

KAWIT, CAVITE – The Commission on Audit (COA) has released a report on the municipality of Kawit, Cavite under the administration of Mayor Angelo Aguinaldo, revealing significant financial irregularities.

The report focuses on 99 unreleased checks totaling P5,522,270.64 as of December 31, 2021, which were not reverted back to the Cash in Bank Local Currency, Current Account (LCCA) and appropriate liability accounts.

The Municipal Treasurer’s Office had submitted a Schedule of Unreleased Checks to the Municipal Accounting Office, as required by COA GAFMIS Circular Letter No. 2002-001.

However, the funds were not returned to the LCCA, resulting in an understatement of both accounts by the same amount in the Statement of Financial Condition, COA said.

The COA GAFMIS Circular Letter No. 2002-001, dated December 16, 2002, stipulates that a Schedule of Unreleased Checks should be prepared by the Cashier for submission to the Accounting Unit at the end of each month.

Furthermore, at the end of the year, a Journal Entry Voucher (JEV) should be prepared to record the restoration of cash equivalent to the unreleased checks and recognition of the appropriate payable/liability accounts.

Despite these clear instructions, the Accounting Office did not prepare a JEV to restore the amount of P5,522,270.64 to its respective Cash in Bank and liability accounts, COA said in its Annual Report.

COA stressed that this irregularity occurred despite the submission of the Schedule of Unreleased Checks as of December 31, 2021, by the Office of the Municipal Treasurer.

This deficiency has resulted in the understatement of the Cash in Bank Local Currency, Current Account, and appropriate payable/liability accounts by the same amount, according to COA.