Management should have exerted efforts in following up the credit
notices.
5.5. Overall, it is emphasized that failure to settle the accounts is a “prima facie”
presumption under Article 217 of the Revised Penal Code that these funds have been
malversed for personal use and benefits (Martinez vs. Sandiganbayan, GR No.
126413 dated August 20, 1999), and shall likewise constitute violation of Article 218
of the Revised Penal Code and Section 89 of P.D. No. 1445 for failure to render
accounts which is punishable under Section 128 thereof, viz:
“Section 128. Penal provision. Any violation of the provisions of Section
67, 68, 89, 106 and 108 of this Code or any regulation issued by the
Commission implementing these sections, shall be punished by a fine not
exceeding one thousand pesos or by imprisonment not exceeding six
months, or both such fine and imprisonment in the discretion of the court.”
(Underscoring ours)
5.6. Nevertheless, may we remind Management of the provision under Section 104 of
P.D. No. 1445 which stipulates that:
“Records and reports required by primarily responsible officers. The
head of any agency or instrumentality of the national government xxx shall
exercise the diligence of a good father of a family in supervising accountable
officers under his control to prevent the incurrence of loss of government
funds or property, otherwise he shall be jointly and solidarily liable with the
person primarily accountable therefor. xxx.” (Underscoring supplied)
5.7. The inability to fully settle the cash advances exposed government funds to personal
use and/or misappropriation and likewise misstated the receivable and related
expense accounts in the financial statements. Moreover, the propriety and validity of
the expenses incurred from payments out of the advances cannot be ascertained.
5.8. We recommended that the City Mayor direct all AOs to settle their unliquidated
cash advances by undertaking the following:
5.8.1. Thru the City Accountant, send demand letters for the immediate
liquidation of unliquidated cash advances, particularly for the travel and
special undertakings, withhold payment of any money owing to the AO
after due notice, and henceforth, strictly observe the requirements/
limitations stipulated under Section 89 of P.D. No. 1445 and COA
Circular No. 96-004;
5.8.2. Communicate with COA Central Office as to the status of the liquidation
reports submitted for the Confidential and Intelligence Funds cash
advances granted from CYs 2011-2015 so that settlement could be
recognized in the books;
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