Headline: the Bohol Chronicle
Over P20-million have been spent by city government officials and employees through cash advances which remain unliquidated by the end of 2008, according to a report of the Commission on Audit (COA).
The city mayor has the biggest unliquidated cash advances totalling to P7,100,000.00.
Due to the huge amount of cash advances, COA Regional Director Delfin Aguilar stated in the audit report that starting January 2009, city officials and employees will no longer be granted cash advances for travel.
The 2008 audit report showed that unliquidated cash advances of city officials and employees ballooned by over P13-million even as state auditors already warned of allowing releases for advances of funds due to unsettled accounts of P6.4 million during the 2007 year-end audit.
Of the 2008 unliquidated cash advances, P7.1 million was cash advanced by the city mayor labelled in the report as "Intelligence and Confidential Expenses." The city
mayor's unliquidated cash advances escalated to more than double since in the previous year (2007), COA found him to have an unliquidated cash advance of P3 million. In 2008, its P7.1 million, which the mayor has not liquidated, according to the COA Audit Report.
The mayor has a pending graft case before the Office of the Ombudsman for unliquidated cash advances, aside from three others, namely the highly questionable contract in the Agora Market, the environmental destruction and the alleged tax harassment charges.
The P20,053,211.66 various unsettled funds from officials came from the city's General Fund amounting P15,510,937.30; another P4,138,034.48 from the Special Education Fund; and P404,239.88 from the city Trust Fund.
In issuing the ban on travel cash advances, COA guidelines state that "travels can only be made at the expense of concerned official or employee, subject for reimbursement, the audit report cited. State auditors also required the liquidation of unsettled cash advances and receivables."
"DEFICIENCIES"
Aside from unliquidated cash advances of city officials and employees, state auditors also noted "deficiencies" in the utilization of the city's 20% Development Fund for the 15 barangays.
According to the COA report, P3.6 million were found unliquidated that were advances out of the 20% Development Fund projects that were implemented by the city barangays plus another P3,632,088.66 financial assistance from the Sangguniang Panlungsod.
The audit report added that the city government failed to monitor the status of these funds and its liquidation by the barangays.
ELUSIVE DOCUMENT
Unlike the 2007 COA report which identified the names of those who were unable to liquidate their cash advances, the 2008 did not contain the details.
Even Regional Director Aguilar revealed that until July 15, 2009, the "Audit Team leader of Tagbilaran City informed that the financial statements as of December 31, 2008 are still in the process of review and verification."
The copy of the summary obtained by the Chronicle last Friday was furnished to the Sangguniang Panlungsod during last Friday's session.
The COA report was released after City vice Mayor Jose Antonio Veloso wrote COA commisioner seeking help since local accountants and budget officers at the city hall declined to release the report.
GRAFT RAPS VS. CITY HALL
It may be recalled that two complaints were filed against the Tagbilaran city mayor and other city officials at the Visayas Ombudsman last April 3, 2009 for failure to liquidate cash advances and violations of the code of conduct and ethical standards of public officials and employees.
Charged with the mayor for failure to render accounts, a violation of Article 218 of the Revised Penal Code, are Executive Assistant Arlene Karaan, City Administrator Walter Toston, Supervising Administrator Eucofronio b***t and retired Assistant Human Resource Management Officer Mario Lloyd Gutierrez.
The complaint was filed by city residents and taxpayers Fernando Galan, Sr and Zosimo Torillo.
The other complaint, for violation of Republic Act 6713, the code of conduct and ethical standards of government officials and employees, also named the city mayor as respondent together with City Budget Officer Rosemarie Palma, City Accountant Kurt Adolf Bungabong and City Auditor Teresita Irig.
At the time of the filing of the complaint, the unliquidated confidential expenses spent by the city mayor amounted P3 million.
2008 CASH ADVANCES
In the 2008 audit findings, cash advances were granted to officers and employees in the amount of P11,919,694.50 which include travels, intelligence/confidential expenses and under-remittances of city collectors.
The breakdown follows: Intelligence/Confidential expenses, P7,100,000.00; Travel, P1,564,367.22; special purpose/time bound CAs P3,197,329.96 and collector's underremittances P57,952.32.
Some P1,078,006 are due from non-government organizations (NGOs) and people organizations (POs).
The audit report likewise listed unliquidated cash advances itemized as "other receivables" which totals P2,513,281 from the General Fund, P4,138,034.48 from the Special Education Fund, and P404,239.88 from the city Trust Fund for livelihood loans.
According to state auditors, "the failure to liquidate the cash advances and financial assistance resulted in the under-statement of expenses and consequently the overstatement of the net income and/or the assets of the city".
Also, state auditors said, "the unused or unremitted cash, if any, in the hands of concerned accountable officers may result in the possible loss or misapplication of funds".
REFERRED TO COMMITTEE
During the Sangguniang Panlungsod (SP) session last Friday, administration kagawad Oscar Glovasa referred the 2008 Audit Report was referred to the Committee on Appropriation.
In an interview with the Chronicle, Vice Mayor Veloso said these are glaring violations which the officials involved should be held liable. This is the second time, that millions of pesos are in the hands of city hall officials unliquidated "as if the funds are their personal money."
Veloso challenged Kag Glovasa to issue his committe's recommendations to the deficiencies found by the COA.
In the 2007 case, Glovasa merely told lawmakers during one of their sessions that the cash advances were already liquidated. However, he failed to show documents from COA to prove that such cash advances were already liquidated.
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Topic: New P20 Million Unliquidated Cash Advance in Tagbilaran City Hall (Read 1143 times)