5.4.1.Cash advances were not liquidated as soon as the purpose for which it was given
had been served, outstanding for as long as 13 years overdue. It showed an
increase of ₱3,516,525.94 from the CY 2023 year-end balance, although a
disclosure was made on the Notes to the Financial Statements that the amount
of ₱2,364,914.00 was liquidated in January 2025.
5.4.1.1. Only three per cent of the said amount was within the 30-day period for
liquidation while the remaining 97 per cent were more than 30 days old
since these were granted but remained unliquidated as at year-end,
beyond the periods stipulated by the regulations cited earlier. The aging
of said advances is summarized as follows:
Age Amount %
1 – 30 days ₱1,422,920.00 3%
31 days – 1 year 4,087,917.15 10%
Over 1 year – 5 years 458,361.72 1%
Over 5 years 35,603,282.43 86%
Total ₱41,572,481.30 100%
5.4.1.2. An analysis of the composition of the total amount showed the
following purposes for which the cash advances were granted:
Purpose Amount
Confidential and Intelligence Fund ₱37,168,058.40
Buglasan and LGU-Sponsored Activities 4,237,200.62
Travel / Seminars 167,222.28
Total ₱ 41,572,481.30
5.4.1.3. Those granted to special disbursing officers for the Buglasan Festival,
specifically in CYs 2013, 2014, 2019, 2022, and 2024, as well as the
LGU-sponsored training seminars were supposed to be liquidated as
soon as the activity was completed, while those for travel, all domestic,
were to be liquidated within 30 days from return to official station.
5.4.1.4. With the length of time elapsed since these were supposed to be
liquidated, the possibility of the advances being spent for personal or
other purposes cannot be discounted.
5.4.1.5. The report submitted by the CAO likewise indicated that there were
some documents pertaining to these cash advances that were damaged
by Typhoon Odette. It may be recalled that the said typhoon occurred in
December 2021. Had the AOs duly submitted their liquidation papers,
they would not have been exposed to the said calamity; hence, there can
be no merit given under the circumstances.
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