Tarlac officials have P42.8-M unsettled cash advances – COA

MANILA, Philippines - The Commission on Audit (COA) has called on the provincial government of Tarlac to have its officials and employees settle their unliquidated cash advances that have ballooned to more than P42.8 million.

Of the amount, state auditors said more than P26.3 million is one to two years past due as of Dec. 31, 2011 despite earlier recommendations to withhold any payments to the concerned accountable officials and the various demand letters sent to them.

In a report released only recently and forwarded to Tarlac Gov. Victor Yap in July 2012, COA said it called for the liquidation of the cash advances as early as October 2011.

The audit team headed by State Auditor IV Romeo Mendoza said the unsettled cash advances resulted from the failure of Tarlac officials to follow the rules on the grant, utilization and liquidation of cash advances under COA Circular No. 97-002.

Citing specific violations, state auditors said the provincial accountant and the provincial treasurer allowed additional cash advances to officials and employees even if the previous cash advances given to them were not yet settled.

Records show the cash advances were also not reported as soon as the purposes for which they were given had been served with allowed cash advances exceeding P15,000 for each transaction.

The provincial government, according to COA, should direct the accountable officials and employees to immediately liquidate or settle their cash advances.