MANILA – The Commission on Audit ceased its policy of freezing barangay accounts flagged with irregularities to prevent the delay in services for local communities, according to a circular released on Tuesday.
Based on its Circular No. 2019-001 dated Jan. 30, COA said it will no longer issue COA Auditor’s Advice (CAA) directing authorized government banks to withhold the payments of checks issued by barangays with questionable transactions.
“In consonance with the function of the commission to prevent irregular, unnecessary, excessive, extravagant and unconscionable expenditures or uses of government funds, this circular is prescribed to discontinue the use of the CAA and provide control mechanism to enforce submission of the barangay transaction documents,” COA said.
It admitted that the CAA – a notice for government banks not to release barangay funds – “causes the delay/stoppage in the delivery of service of the barangay”
It thus bestowed the fiscal responsibility to barangay chairpersons.
Under COA Circular No. 2012-005, a CAA is issued when barangays fail to submit the original copy of the disbursement vouchers signed by the payee and other supporting documents.
But the COA said supervising auditors and audit team leaders will now enforce new procedures, requiring barangay treasurers to submit financial transaction documents to the city/municipal accountant within 10 days after the end of the month.
The COA said a notice of disallowance will be issued upon the failure to remit the transaction documents.
The commission warned concerned barangay officials may face administrative and criminal charges in case they fail to follow the new COA circular.
“Failure or neglect of the officials and employees concerned to discharge their respective duties and responsibilities provided herein shall be a basis for appropriate administrative/criminal sanctions under Presidential Decree No. 1445, the Civil Service rules and regulations, the Revised Penal Code, and such other pertinent penal statutes,” it said.
COA chairperson Michael Aguinaldo and Commissioners Jose Fabia and Rolando Pondoc all signed the circular. (With GMA News/PN)
