Cash-in-Bank – Local Currency Current Account balance of ₱60,137,598.45 as of
December 31, 2024, cannot be reliably determined, thereby affecting the fair
presentation of the Municipality’s financial statements.
7.9 We recommended and the Municipal Accountant agreed, in coordination with
the Municipal Treasurer, to trace the discrepancy in the General Fund to
previous bank statements and credit/debit memos to identify appropriate
reconciling items. Furthermore, we recommended and the Municipal
Accountant also agreed, with assistance from the Municipal Treasurer, to
secure the bank statement for Account No. 0292-0035-28, to reconcile the
discrepancy in the Trust Fund.
7.10 The Municipal Treasurer and Municipal Accountant informed the Audit Team that
the Bank Statement for the Trust Fund associated with Account No. 0292-0035-28
had been secured and the account reconciled.
Unliquidated cash advances - ₱3,379,262.99
8. Cash advances totaling ₱3,379,262.99, of which ₱3,258,786.99 has been
outstanding for over three years, remain unliquidated as of December 31, 2024,
despite management’s efforts to compel the concerned officials and employees to
effect settlement as required under COA Circular No. 97-002, dated February 10,
1997, thus the related receivable and expense accounts in the financial statements
are still not fairly presented. Moreover, the unutilized government funds in the
possession of the accountable persons are exposed to the risk of loss or
unauthorized use.
8.1 Section 5.1 of COA Circular No. 97-002, dated February 10, 1997, requires the
accountable officer (AO) to liquidate his/her cash advances as follows:
8.1.1 Salary, wages, etc. – within 5 days after each 15-day/end of the month pay
period.
8.1.2 Petty operating expenses and field operating expenses – within 20 days after
the end of each year, subject to replenishment as frequently as necessary
during the year.
8.1.3 Official travels – In the case of foreign travel, within 60 days after his/her
return to the Philippines. While for local travels, 30 days after his/her return
to his permanent official station.
8.2 Furthermore, Section 5.7 thereof stipulates that when the cash advance is no longer
needed or has not been used for a period of two months, it must be returned or
refunded immediately. It is emphasized that all cash advances shall be fully
liquidated at the end of each year, in accordance with Section 5.8 of the same
Circular. In the same provision, the accountable officer is mandated to refund any
unexpended balance to the cashier/collecting officer, who shall issue the necessary
official receipt, except for the case of cash advances for the petty cash fund.
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