Over P1.1M gas expense, P1.1M cash advances haunt Btac. Viejo execs
Validation of last year’s disbursements by various Local Government Units (LGUs) is on its final stage yet “ghosts from the past” linger and haunt select officials and employees of the Barotac Viejo Municipal Government.
With financial reports, bank statements and vouchers now in the hands of government auditors, latest available audit report of the Commission on Audit (COA) formed part of the major work revisited by the auditing team.
For instance, claims of gasoline, oil and lubricants under the town’s General Fund accumulated to over P1.1 million as of recent annual audit. Problem though, the year-end trial balance then reflected the expense with no monthly report of fuel consumption.
A total of 15 vehicles issued to the Barotac Viejo Municipal Government supposedly used up the over P1.1 million gasoline, oil and lubricants. These included two Sport Utility Vehicles (SUVs), the town’s police car, fire truck and ambulance.
The COA while recognizing the need for said expense reminded town officials concerned to process the claims and payments regularly.
Otherwise, the Commission recommended through the town accountant to “discontinue the processing… unless supported by complete documentation.” This, the COA noted, is the only way for government to ascertain and determine the “reasonableness” of fuel consumed during the period stated.
Next off was the P1,151,751.45 unliquidated cash advances to some 20 employees and officials.
“In the conduct of the audit, it was noted that the Municipality granted cash advances to officials and employees despite the non-liquidation of previous cash advances. The unliquidated cash advances to officials and employees included payroll fund and traveling expenses which dates back to May 2002,” the COA noted. “This practice shows an absence of sound and effective internal control system over cash advances and may increase the risk of possible misuse and misappropriation of government funds. This will also result in overstatement of Due from officers and employees account and understatement of expenses account.”