KAWIT, Cavite – A Commission on Audit (COA) report has found that the municipality of Kawit, Cavite granted additional cash advances to accountable officers despite existing unliquidated advances, contrary to government regulations.
The COA report states that as of December 31, 2020, P18,793,400 in cash advances remained unliquidated, violating provisions of Presidential Decree No. 1445 and COA Circular No. 97-002. These regulations require that cash advances be liquidated as soon as the purpose is served and that no additional advances be given until previous ones are settled.
Among the unliquidated advances were funds for confidential expenses (intelligence fund) and special purpose activities granted in 2020.
The report cites specific examples, including advances to officers Gladies Ann Mayette L. Alastoy and Noveleta B. Luyun for events like Teachers’ Day celebrations and COVID-19 response efforts.
COA auditors found that cash advances were granted even when prior advances were not yet liquidated, leading to an accumulation of outstanding balances.
This practice, according to COA, results in overstating the government’s equity account and understating expense accounts.
COA strongly reiterated its recommendation from the previous year that Municipal Mayor Angelo Aguinaldo direct the Municipal Accountant to strictly adhere to guidelines on granting, utilizing, and liquidating cash advances.
Specifically, COA urged LGU Kawit refraining from granting additional advances to officials with unliquidated prior advances.
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