Non-compliance with requirements for cash advance of confidential funds – ₱4 million
15. The City Government was not able to submit the cash advance vouchers
pertaining to confidential funds in CY 2024, within seven days from the release of
the check, in contravention of Section 6.1.8.4 of COA-DBM-DILG-GCG-DND
Joint Circular No. 2015-01, dated January 8, 2015, thus propriety and validation
of the purpose and details of the disbursement of the cash advance could not be
verified in a timely manner.
15.1 The Commission on Audit (COA), Department of Budget and Management
(DBM), Department of the Interior and Local Government (DILG), Governance
Commission for GOCCs (GCG), and the Department of National Defense (DND),
issued Joint Circular (JC) No. 2015-01, dated January 8, 2015 to provide for the
“Guidelines on the Entitlement, Release, Use, Reporting and Audit of Confidential
and/or Intelligence Funds.”
15.2 Because utilization of these funds is generally confidential and classified by nature,
the more agencies require not only strong internal controls in the release and
utilization thereof, but also strict accounting and auditing rules to prevent
mishandling or improper application of funds. Therefore, even if auditing of the
liquidation of the cash advances for confidential funds (CF) is within the
jurisdiction of the Intelligence and Confidential Fund Audit Unit (ICFAU), under
the Office of the Chairperson of the Commission, the cash advance drawn in
relation thereto shall be examined by the concerned COA Audit Team Leader for
post audit.
15.3 Section 6.1.8.4 of the abovementioned JC requires that the Agency Accountant or
authorized representative, to submit, within seven days after the release of check,
the cash advance voucher with covering transmittal letter enumerating the
supporting documents, in a sealed envelope to the COA Audit Team Leader for
post audit. The audit revealed, however, that only the supporting documents were
submitted.
15.4 The cash advance voucher, pursuant to Section 6.1.5 of the said JC, shall expressly
state the duration of implementation of projects under the CF, and on the said
voucher, shall bear the certification of the Agency Accountant, either stamped or
printed on its face, that the previous cash advance for the same purpose, project or
activity, granted to the Special Disbursing Officer (SDO) requesting the cash
advance has already been liquidated and that proper accounting thereof was made.
15.5 Perusal of the documents relating to the cash advance of confidential funds
submitted to this office on January 19, 2024, and July 30, 2024, showed that only
the supporting documents were submitted. The cash advance voucher was not
among the documents submitted. While the Certification of the City Accountant
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