BY GEROME DALIPE IV
ILOILO City – The Commission on Audit (COA) has flagged the Iloilo State University of Fisheries and Technology (ISUFST) for failing to liquidate cash advances totaling P4.753 million, as revealed in its annual audit report.
COA noted that as of year-end, the university had not complied with COA Circular No. 97-002, dated February 10, 1997, which mandates the timely liquidation of cash advances.
According to the circular, cash advances must be reported and liquidated as soon as the purpose for which they were granted has been fulfilled.
If unused for two months or no longer needed, the amount should be refunded to the collecting officer.
Additionally, all cash advances must be fully liquidated by the end of the fiscal year.
For petty cash funds, any unspent balance must be refunded to the cashier or collecting officer, who will issue an official receipt.
Section 5.1.3 of the circular explicitly states that failure to liquidate cash advances within the prescribed period constitutes valid grounds for withholding the accountable officer’s salary.
The audit found that cash advances dating back to 2023 and earlier remained unsettled, with delays ranging from two days to over a year.
A portion of the unliquidated amount, P341,398.63 (7.18% of the total), pertains to advances granted as far back as 2003 to 2016 to four accountable officers who are no longer with the university, making recovery unlikely.
This issue was previously highlighted in past audit reports but remained unresolved, putting government funds at risk of loss or misuse.
The non-liquidation also resulted in valid expenses not being recorded in the fiscal year they were incurred.
To address these deficiencies, COA instructed ISUFST to provide explanations for the recurring issues and outline a concrete plan for resolution.
The auditors also directed the university to exhaust all remedies to recover funds from the four accountable officers no longer with the institution and to set a timeline for settlement.
The state auditors further instructed the university to ensure adherence to COA Circular No. 97-002 on the granting, utilization, and liquidation of cash advances.
They also recommended the implementation of Section 5.1.3 of the circular by withholding the salaries of officials and employees who fail to comply with liquidation rules.
The failure to resolve this long-standing issue has undermined financial accountability and transparency, the auditors stressed./PN
