Ombuds found with P181T unliquidated cash advances

The Commission on Audit report revealed some deficiencies of the Office of the Ombudsman-Visayas in handling its funds as what can be gleaned from 2004 annual report.

COA observed that various officials and employees of Office of the Ombudsman-Visayas were granted additional cash advances even though the previous ones were not yet liquidated.

Cash advances totaling P204,353.21 at OMB-Visayas had remained outstanding, of which a total of P181,835.21 had been unliquidated for a period of 30 days to over three years resulting in the understatement of Expenses and overstatement of Cash in the financial statements.

With this, COA recommends the said office to "monitor closely the liquidation of all outstanding cash advances" and "send demand letters to accountable officers that failure on their part to liquidate shall constitute a valid cause for the withholding of their salary."

The audit report also showed that there are officers and employees whose receivables-due amounting to P696,859.54, was only substantiated P204,353.21 per aging schedule contrary, the difference of P492,506.13 remained unaccounted.

Also, the prior years' disallowances and suspensions, amounting to P22,342.86 and P614,648.95, respectively, had remained unsettled during the year, and no subsidiary ledgers were maintained for these deficiencies.

These disallowances and suspensions pertained to the transactions from 1995 to 2000, for which Notices of Disallowances and Suspensions were properly issued to the respective persons liable; Accountant, Cashier and agency head by the former auditors. But the management failed to enforce the immediate settlement of these deficiencies from them upon receipt of the notices or in the succeeding years. Also, it was only during the current year when the disallowance of P22,342.86 was recorded in the books.

And, the subject accountant failed to maintain subsidiary ledgers for each person liable for monitoring purposes contrary to the requirements in the CSB Manual.

The accountant explained that they had already sent letters to some persons liable for their disallowances during the year, and for those with suspensions, reminders would be issued to them in the ensuing year.

With this COA wanted this verified whether or not there were settlements made of these disallowances and suspensions in the previous years as claimed by the former accountant. The required status report of such settlement thereof as of December 31, 2004, and thereafter on a quarterly basis, should be submitted to the Auditor for verification, duly supported with the necessary documents.

But COA found the financial statements of the Office of the Ombudsman "fairly" presented" as seen through its financial position as of December 31, 2004 and the results of its operations and its cash flows for the year then ended in conformity with applicable generally accepted state accounting principles.

The audit covered the operations of the Office of the Ombudsman and its Area/Sectoral Offices for CY 2004. The objectives of the audit were to ascertain the fairness and reliability of office's financial position and results of operation. - Liv G. Campo