by Allan Yves Briones
The municipal government of Tanay, Rizal has been scolded a second time for its methods in granting cash advances which allegedly expose government funds to risk of irrecoverable loss.
A practice which, according to the Commission on Audit (COA), is in violation against law.
According to the 2018 Annual Audit Report on the Municipality of Tanay, the municipal government granted cash advances from the general and special education fund in excess of the officers’ and employees’ maximum cash accountabilities.
State auditors found that excesses ranged from P116,930 to P1.86 million, which would not be covered by cash protective measures.
“Hence, in case of irregularities, like defalcation, shortages and the like, the fidelity bond shall not answer for the amount exceeding the maximum cash accountability, to disadvantage of the government,” the state auditing agency stated in the report.
Under Section 101(2) of Presidential Decree No. 1445 and Item 4.2 of Treasury Circular No. 02-2009, every accountable officer should be properly bonded or insured.
State auditors also found that prior cash advances were not fully liquidated by the end of the year, contrary to Section 5.8 of COA Circular No. 97-002.
COA reiterated their previous year’s recommendation, addressing the municipal treasurer to ensure that all accountable officers are properly insured.
According to the municipal accountant and municipal treasurer, as stated in the report, they are in transition to an automated teller machine (ATM) system, but will exhaust all possible solutions to comply with the state auditing agency.