Minglanilla execs fail to settle P11.7 million in cash advances

CEBU, Philippines — Majority of the cash advances drawn by various officials of the Municipality of Minglanilla remained unliquidated as of December 31, 2020.

Report of the Commission on Audit showed that the unliquidated cash advances, totaling P11.7 million, included P2.7 million by Mayor Elanito Peña, P2.6 million by former mayor Eduardo Selma, P2.9 million by municipal accountant Ruzzien Mantalaba, and P1.8 million by municipal engineer Hedwig Semini.

The rest of the unliquidated cash advances were drawn by 21 other municipal employees.

COA had asked the local  government unit  to send demand letters to the specific persons liable to immediately settle the cash advances either by returning the money advanced if unspent, or by presentation of required supporting documents.

The LGU, for its part, had assured COA that it will issue demand letters with regard to the unliquidated cash advances.

Also, state auditors noted that the municipal accountant did not follow the required format with regard to the status of unliquidated cash advances which requires specific important details of the cash advances like the date granted, the due date for liquidation, the age of cash advance and the status of the employees, whether they are still connected with the municipality or have retired or resigned already.

COA said the incomplete data provided showed that there was no proper monitoring of the unliquidated cash advances. Also, this may make it difficult for the municipal accountant to properly monitor the status of the specific cash advances for each employee and collect accordingly.

“The submission of the details of the unliquidated cash advances in its required format, the submission of the liquidation reports and other supporting documents are necessary for proper verification and to establish that the transactions actually transpired and were valid, legal and proper,” read the audit report.

COA asked the municipal accountant to submit supporting documents for the granting and liquidation of cash advances, including the proof of exhaustion of all remedies to collect.

 “Failure on their part to comply with the submission of the liquidation shall be a ground for disallowance in audit,” it further said. — JMD (FREEMAN)