accountability of the designated officer. Thus, financial transparency and
accountability could not be fully achieved as the practice obscures proper tracking
of refunds.
12.5 The improper handling of refunds increases the risk of lapping, in which incoming
funds are used to cover previously unrecorded or misappropriated amounts. By
mixing different refunds into a single deposit, there is a possibility that older,
unliquidated advances could be concealed using newly refunded amounts, delaying
the detection of discrepancies or mismanagement. Consequently, government
funds are exposed to the risk of loss through misapplication.
12.6 We recommended that the City Accountant ensure that no additional cash
advances are granted unless previous ones have been fully liquidated in
accordance with COA Circular No. 97-002.
12.7 We further recommended that Management, in coordination with the City
Accountant and City Treasurer, implement stricter monitoring and approval
for cash advances and liquidations, including regular reconciliation of
accounts.
12.8 Management noted that the City Accountant and the City Treasurer have already
met and agreed on the steps to ensure strict implementation of the guidelines
regarding the grant and liquidation of cash advances. The City Treasurer, in
coordination with the City Accountant, also discussed with the audit team that they
would rigorously enforce the regulatory period for liquidating cash advances.
12.9 They also added that they would simplify the granting of cash advances by
ensuring they are classified by nature, facilitating easier liquidation and accounting
of these advances and preventing their lapping.
Advertising expenses included irregular expenditures – ₱1,155,000.00
13. The City Government incurred advertising expenses for activities not related to
the issuance of its guidelines, rules, and regulations, conduct of public biddings,
dissemination of important public announcements, and the promotion of the City
Government’s economic enterprise, inconsistent with COA Circular No. 2024-005,
dated March 14, 2024, thus, resulting in irregular expenditures amounting to
₱1,155,000.00.
13.1 The Implementing Rules and Regulations (IRR) of Republic Act (RA) No. 9184
provides for the procurement of media documentation, advertisement, or
announcement through television, radio, newspaper, internet, and other
communication media. Considering the rapid progression into the digital era and
other technological advancements, the Commission found it necessary to update
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