was also submitted, it was as a separate document, stating that the SDO had no
existing unliquidated cash advances as of particular dates (January 2, 2024 and July
17, 2024 – dates before the transmittal of the supporting documents).
15.6 Thus, the date of the release of the corresponding check for the cash advance cannot
be determined, and verification of the appropriateness of the specific purpose and
duration of the implementation of specific projects or activities under the CF,
cannot be done on a timely manner.
15.7 We recommended that, henceforth, Management ensure that the cash
advance voucher for the release of funds for Confidential Expenses is
submitted to the concerned Audit Team Leader within seven days from the
release of the check.
15.8 Further, we recommended that the specific duration of implementation for
the said cash advance and purpose thereof, shall be indicated on the face of
the voucher.
15.9 Lastly, we recommended that the Certification of the Accountant shall be on
the face of the cash advance voucher, in accordance with Section 6.1.5 of COA-
DBM-DILG-GCG-DND Joint Circular No. 2015-01, dated January 8, 2015.
15.10 The personnel in charge of preparing and submitting the cash advance explained
that they assumed the cash advance voucher was not required to be submitted, as
it was not listed in the transmittal letter. Upon understanding the audit
observations, she promised to follow the guidelines accordingly. She agreed to
henceforth include the cash advance voucher when transmitting the supporting
documents for the cash advance.
16. Cash advances totaling ₱4 million were made for the implementation of projects
and activities under the Confidential Fund for a period exceeding the three months
limit, inconsistent with Section 6.1.5 of COA-DBM-DILG-GCG-DND Joint
Circular No. 2015-01, dated January 8, 2015, thus disregarding the controls
installed in the grant, utilization, and liquidation thereof.
16.1 Confidential Funds, by its name, is generally confidential in nature. Thus, it is
necessary to install strong internal controls in the release and utilization thereof.
Relative thereto Section 6.1.5 of COA-DBM-DILG-GCG-DND Joint Circular (JC)
No. 2015-01, dated January 8, 2015, expressly requires that cash advances for
confidential expenses shall be limited to the requirements for three months.
Moreover, the disbursement voucher (DV) of the said cash advance shall clearly
state the duration of the implementation of the projects or activities. In cases where
implementation would take more than three months, an additional amount may be
granted only after the liquidation of the previous cash advance.
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