DEMAND FOR IMMEDIATE LIQUIDATION AND SETTLEMENT OF ALL CASH ADVANCES OUTSTANDING AS OF DECEMBER 31, 2011
1.0 Rationale
Under existing regulations, cash advances must, as a rule, be
liquidated within the prescribed periods depending upon the nature and
purpose of the cash advance (e.g., for salaries and wages; petty and
field operating expenses; local travel and foreign travel). Included
among operating expenses are cash advances for the payment of honoraria
and similar payments to officials and employees; operating expenditures
for special projects and activities like anniversary celebration; and
special purpose and time bound activity like cultural and athletic
activities. These must be liquidated within twenty (20) days from
accomplishment of the purpose.
2.0 Settlement and Liquidation of Cash Advance
A cash advance is settled and liquidated either by returning
the money advanced if unspent, or by the presentation of regularly
accomplished vouchers, giving satisfactory detail of the items thereon
paid which must be in accordance with the purpose for which the cash
advance was granted, and further supported by proper receipts and other
evidence of payment, subject to the result of the post-audit thereof by
the auditor concerned.
3.0. Primary responsibility of Heads of Agencies
Under Section 2 of Presidential Decree (P.D.) No. 1445, the
Government Auditing Code of the Philippines places the responsibility to
faithfully take care that government funds and property be safeguarded
from wastage directly with and primarily on the chief or head of the
government agency concerned.
4.0. Outstanding amounts of cash advances in government
Audit, however, reveals that unliquidated cash advances in
government have reached a staggering sum in the aggregate, and despite
repeated demands and requests for liquidation, the advances have
remained unliquidated.
5.0. Legal presumption against non-liquidation of cash advance
Article 217 of the Revised Penal Code states in unequivocal terms
that: “The failure of a public officer to have duly forthcoming any
public funds or property with which he is chargeable, upon demand by any
duly authorized officer, shall be prima facie evidence that he has put
such missing funds or property to personal use.”
6.0 Final demand to settle unliquidated cash advance
Wherefore, final notice and demand is hereby made to all
concerned to settle and Iiquidate all outstanding cash advances as of
December 31, 2011 on or before January 31, 2013. Provided, however, that
those who have been issued by the Commission on Audit notice and
demand, prior to the issuance of this Circular, to settle and liquidate
their cash advances within a specified period, shall do so within the
period specified in the said notice.
For purposes of this Circular, an accountable public officer
refers to a public officer or employee who, in the discharge of his
office, receives money from the government which he is bound to later
account for. Transfer, separation or retirement from the government does
not operate to discharge the said person from coverage of the
definition and corresponding duty to account for the unliquidated
advances.
This Circular shall serve as the demand required under
appropriate law, rules and regulations to settle the accountable
officer’s unliquidated cash advance as well as all those who are already
separated from the service or have transferred to other agency.
7.0 Duty of Agency officials
On or before December 15, 2012, all heads of government agencies
shall disseminate in writing this Circular to all accountable officials
and employees within their respective agencies and serve a written
notice to and demand settlement of the outstanding cash advances as of
December 31, 2011.
The Chief Accountant shall, within the same period, furnish the
head of agency and the head of the auditing unit thereat a list of
accountable officers with unliquidated and outstanding cash advances.
8.0 Duty of the Commission on Audit
It shall be the duty of the head of the auditing unit/Audit Team
Leader in the agency to ensure that the outstanding cash advances are
liquidated within the periods specified above. In addition, he shall
evaluate the cash advances of accountable officers to determine
compliance with the requirements of pertinent COA rules and regulations
and to report violations thereof.
Moreover, the auditors
concerned shall report on or before February 28, 2013 to the agency head
and to the Director, Fraud Audit and Investigation Office, this
Commission, compliance with this Circular including an aging of the cash
advance balances of accountable officers in such form showing the
purpose of the cash advance and other information required.
The Auditors shall submit to their respective Directors the
vouchers and all supporting documents relative to the grant of the
unliquidated cash advances copy furnished the Office of the Chairperson,
this Commission.
9.0 Consequences of failure to liquidate
9.1 Failure of an accountable officer to liquidate his outstanding
cash advance on or before January 31, 2013 shall constitute cause for
the filing of malversation charge under Article 217, failure to
liquidate cash advance under Article 218, both of the Revised Penal Code
or criminal prosecution under Section 128 of P.O. No. 1445.
9.2 The suspension of salaries of erring accountable officers shall
be ordered by the auditor concerned to the proper agency official
through the head of the Agency.
9.3 Appropriate administrative proceedings shall likewise be instituted.
10.0 Monitoring Compliance
The Assistant Commissioners concerned shall monitor compliance by the auditor under their jurisdiction.
11.0 Effectivity
This Circular shall take effect immediately.
All previous issuances by this Commission inconsistent herewith are
deemed amended or modified accordingly.
Chairperson
Commissioner
Commissioner