44. The Municipal Accountant did not submit the required semestral status reports
on unliquidated cash advances, fund transfers, and other receivables as of
December 31, 2024 within the prescribe period, contrary to Section 122 of P.D. No.
1445 and COA Memorandum No. 2017-010, which hampered the auditor’s ability
to verify and monitor outstanding accounts, thereby weakening financial oversight
and accountability.
45. Section 122 of otherwise known as the “Government Auditing Code of the Philippines”
states: “Submission of reports. Whenever deemed necessary in the exigencies of the
service, the Commission may under regulations issued by it require the agency heads,
chief accountants, budget officers, cashiers, disbursing officers, administrative or
personnel officers, and other responsible officials of the various agencies to submit trial
balances, physical inventory reports, current Plantilla of personnel, and such other
reports as may be necessary for the exercise of its functions.” (emphasis supplied)
46. Meanwhile, COA Memorandum No. 2017-010 dated May 15, 2017, prescribes the
guidelines on the submission of Status Reports of Unliquidated Cash Advances, Fund
Transfers, and other Receivables. The Commission recognizes that, while the grant of
cash advances is susceptible to abuse, it is a facilitation tool in the financial operation
of the government. However, it has been noticed that, despite considerable measures
adopted by the Commission, significant amounts of unliquidated cash advances and
fund transfers, and other receivables were reported as of the end of CY 2016; hence,
the Commission has revised and prescribed COA Memorandum 2017-010.
47. Item V.1 of the Memorandum states that the status of all receivables, unliquidated cash
advances, and fund transfers shall be updated semi-annually. Furthermore, Annexes A
to D, prescribes the reporting requirements for “Status of Unliquidated Cash
Advances,” “Status of Fund Transfers to other Government/Implementing Agencies
(IAs),” “Status of Fund Transfers to Non-Governmental Organizations/People’s
Organization (NGOs/POs),” and “Status of Other Receivables.” The Municipal
Accountant is required to fill out Column Nos. 1-9 of the status report.
48. On December 26, 2024, we sent an electronic mail to the accounting personnel of the
Municipality to submit the status reports of all receivables unliquidated cash advances,
and fund transfers as of December 31, 2024, on or before January 8, 2025. On January
23, 2025, the Office of the Mayor and the Municipal Accountant received a formal
Request for Documents from the Audit Team, which included the required submission
of the Status Reports on unliquidated cash advances, fund transfers, and other
receivables as of December 31, 2024.
49. On February 25, 2025, or 45 days after the required date of submission, the
Municipality submitted the status report of all receivables, unliquidated cash advances,
and fund transfers.
50. The submission of the required semestral reports beyond the prescribed period reflects
weak internal financial controls, as it obstructs oversight over fund movements and
increases the risk of mismanagement, inefficiency, or fund misuse. This non-
compliance also impedes the auditor’s ability to track and verify outstanding amounts,
delays the identification of responsible accountable officers, and ultimately risks the
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