COA: Kawit AOs Exceeded Cash Accountability, Fidelity Bonds Insufficient

KAWIT, Cavite — Several accountable officers in the Municipality of Kawit, Cavite exceeded their maximum cash accountability in 2023, with excess cash advances ranging from ₱14,000 to ₱234,000, according to a report by the Commission on Audit.

The findings, based on a COA review, revealed that the officers’ fidelity bonds were insufficient to cover their cash advances, violating COA Circular No. 97-002, Section 101 of Presidential Decree No. 1445, and Treasury Circular No. 02-009. These regulations mandate that government officers handling public funds must be properly bonded to ensure financial accountability.

Under existing laws, accountable officers whose total cash accountability exceeds ₱5,000 must secure fidelity bonds proportionate to their financial responsibility.

However, COA found that at least six municipal officers exceeded their maximum accountability, leaving the local government vulnerable to financial risks in case of defalcations, shortages, or unrelieved accountabilities.

“The above condition put the Municipality at risk of non-indemnification in cases of loss through defalcations, shortages, and unrelieved accountabilities due to insufficient bond of the accountable officers,” the report stated.

COA also cited Treasury Circular No. 02-009, which mandates that all officials responsible for government funds—including mayors, treasurers, and other financial officers—must be bonded for the safekeeping of public money.

The Fidelity Fund, which covers losses due to bonded officials’ financial mismanagement, only indemnifies up to the amount of the existing bond. This means any loss beyond the bonded amount would not be covered, putting government funds at risk.

COA recommended that the Municipal Government of Kawit ensure all accountable officers comply with bonding requirements and align their cash advances with prescribed limits to prevent financial exposure.

As of press time, municipal officials have not issued a statement regarding the COA findings.