14.1.3 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.
14.2 Further, 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.
14.3 Our review of the financial statements and the schedule of unliquidated cash
advances submitted by management as of December 31, 2024, disclosed the
existence of unliquidated cash advances amounting to ₱276,549.96 in the
following accounts:
Account Account Amount
Number
Advances to Special Disbursing Officers 1-03-05-030 ₱ 3,220.65
Advances to Officers and Employees 1-03-05-040 217,523.31
Other Receivables 1-03-06-990 55,806.00
Total ₱ 276,549.96
14.4 Advances to Special Disbursing Officers (SDOs) consist of balances that remain
to be liquidated by two SDOs, while the unliquidated amount for Advances to
Officers and Employees pertains to cash advances for the travel expenses of 25
officials and employees. The Other Receivables account is included in the above
table because this amount also represents cash advances for the travel of seven
employees and one official for intelligence purposes.
14.5 Our review of the subsidiary accounts and schedules showed that ₱39,052.32 of
the cash advances for travel have remained unliquidated for over 10 years.
Meanwhile, ₱10,000.00 pertained to cash advances for intelligence purposes,
which have been outstanding for over 13 years. Thus, ₱49,052.32 of the total
unliquidated cash advances have been already outstanding for over 10 years.
14.6 It should be noted, however, that the Office of the City Accountant had already
sent demand letters to the concerned officials and employees, as most of them are
still in active service. Of the 35 officials and employees with outstanding unsettled
cash advances, only two are deceased, two have separated/retired, and two
personnel cannot be traced. Despite management efforts to demand settlement by
sending demand letters, unliquidated balances still exist as of December 31, 2024.
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