COA scores OWWA for P27-million unliquidated cash advances

MANILA, Philippines - The Commission on Audit (COA) has called the attention of the Overseas Workers Welfare Administration (OWWA) over a P27.3 million increase in its unliquidated cash advances in 2009 compared to the previous year.

In a report, state auditors said the agency’s unliquidated cash advances went up from P143,631,281 in 2008 to P170,982,691 as of Dec. 31, 2009 despite the change in the method of releasing funds to overseas posts from cash advance to revolving fund.

COA reminded OWWA of the rule that no cash advance shall be given unless for a legally authorized purpose and that a cash advance shall be reported on and liquidated as soon as the purpose for which it was given has been served.

“No additional cash advance shall be allowed to any official or employee unless the previous cash advance given to him is first settled or a proper accounting thereof is made,” Presidential Decree 1445 states.

State auditors added that COA Circular No. 97-002 dated Feb. 10, 1997 further provides that “all cash advances shall be fully liquidated at the end of each year.”

Records show that as of Dec. 31, 2009, OWWA’s financial statements reported a total of P170,982,691 in unliquidated cash advances.

Of the amount, P169,820,612 pertained to cash advances at the Head Office while P1,162,079 were advances granted to officers and employees of the different Regional Welfare Offices (RWOs).

The unliquidated amount at the Head Office consisted mainly of cash advances for allowances, operating and program fund of OWWA foreign posts.

COA noted that the fund requirements of the foreign posts were released to the Welfare Offices quarterly through cash advance but starting from the fourth quarter of 2009, all fund requirements of foreign posts except those needed for repatriation were released through a revolving fund.

But despite the change from cash advance to revolving fund method, the unliquidated cash advances of the OWWA Head Office still increased from P142,539,942 in 2008 to P169,820,612 in 2009.

“All these cash advances were already expended as of Dec. 31, 2009, thus, the accountable officers should have liquidated the same,” the COA report said.

State auditors said all accountable officers should be required to liquidate their cash advances within the period prescribed by PD 1445.

COA said the heads of RWO IX, XII and Caraga should also be instructed to refrain from granting cash advance to officers and employees with unsettled cash advances.

OWWA, for its part, explained that of the total unliquidated cash advances of P169,820,612 at the Head Office, P56,554,193 liquidation reports had been submitted by the accountable officers.

“Of the amount, P31,401,228 were audited and recorded in the books of accounts in CY 2010,” officials said adding that the Accounting Division will issue notices to all accountable officers to settle unliquidated cash advances within the period prescribed by PD 1445.

“Moreover, the Head of the ROCS issued instructions to the Heads of RWO IX and Caraga to ensure that cash advances are liquidated within the prescribed period and refrain from granting the same to officers with unliquidated cash advances,” the OWWA management said.