chief executive (LCEs) totaling ₱37,168,058.40, for which liquidation documents were
submitted to the COA Chairperson, but no credit notices were received. The existence
of these unliquidated cash advances exposed government funds to risk of
misappropriation, overstated the Advances to Officers and Employees account, and
understated the related expense accounts.
We recommended that the City Mayor direct all Accountable Officers (AOs) to settle their
unliquidated cash advances by undertaking the following:
a) 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;
b) 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;
c) Thru the City Accountant, fully disclose the Confidential and Intelligence Funds
liquidation status in the Notes to the Financial Statements; and
d) Thru the City Accountant, maintain updated index cards for cash advances and submit
the quarterly report with all required information on or before the 5 th day following the
end of each quarter.
2. The City, through its Bids and Awards Committee (BAC), did not fully substantiate
its observance of the rules and regulations in the purchase of various transportation
and heavy equipment totaling ₱53,093,447.66, thereby posing a risk to the propriety
of the disbursements made, as well as the integrity of similar transactions that go
through the procurement process prescribed under the procurement law.
We recommended that the BAC and Technical Working Group be properly supervised and
be made accountable for any lapses in the performance of their functions, as warranted.
We further recommended that Management comply with the requirements/documents
contained in the Notice of Suspension to be issued to enable the audit team to make a
decision in audit.
3. Balances of Local Disaster Risk Reduction and Management Funds (LDRRMF)
transferred to the Special Trust Fund (STF) totaling ₱58,229,062.23 were not
included in the (CY) 2024 LDDRMF Investment Plan (LDRRMFIP), which rendered
questionable the disbursements totaling ₱27,177,510.87. Moreover, the funding year
for the STF projects totaling ₱29 million included in the CY 2024 LDRRMFIP was
not identified, thus, precluding the proper monitoring of the five-year effectivity
period. These were also lump-sum allocations, not supported with project cost
estimates, hence providing weak controls in the utilization of funds.
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