Cash Advances Presented by: - PowerPoint Presentation

Slide1

Cash Advances

Presented by:

Atty.

Roline

M.

Ginez-Jabalde

Resident Ombudsman-

DepEdSlide2

Rationale for the Use of Cash Advance System

It has been recognized as a facilitative tool in the financial operations of the governmentSlide3

General Principles

(Sec. 2, COA Circular No. 97-002)

Daily receipts on collection must be deposited intact with the authorized bank. Ex. Land Bank of the Philippines

All payments must be made by check.

Only payments in small amounts may be made through the petty cash fund. Replenishment of the petty cash fund shall be equal to the total amount of expenditures made there from.Slide4

General Principles(Sec. 2, COA Circular No. 97-002)

In cases when it may be impractical or impossible to make payments by check, payments may be made by the disbursing officer in the form of cash through his cash advance.Slide5

Types of Cash Advance(Sec. 3, COA Circular No. 97-002)

Regular Cash Advance

– are those granted to cashiers, disbursing officers, paymasters, and/or property/supply officer.

Special Cash Advance

– those granted on the explicit authority of the Head of the Agency only to duly designated disbursing officers or employees for other legally authorized purposes.Slide6

Purposes of RegularCash Advances

Salaries and wages

Commutable allowances

Honoraria and other similar payments to officials and employees

Petty operating expenses consisting of small payments for maintenance and operating expenses which cannot be paid conveniently by check or are required to be paid immediately.Slide7

Purposes of Special Cash AdvancesCurrent operating expenditures of the agency field office or of the activity of the agency undertaken in the field when it is impractical to pay the same by check, such as:

- salaries, wages, and allowances

- maintenance and other operating expensesSlide8

Purposes of Special Cash Advances

2. Travel expenditures including transportation fare, travel allowance, hotel room/lodging expenses and other expenses incurred by officials and employees in connection with official travel.Slide9

General Guidelines

in

Granting and Utilization

of

Cash Advances

Slide10

General Guidelines(COA Circular 97-002, RMO Circular 2009-002)

Specific legal purpose

2.

No additional cash advance unless previous CA is liquidated

3.

Immediate liquidation/reporting after purpose is servedSlide11

General Guidelines(COA Circular 97-002, RMO Circular 2009-002)

DOs should be bonded and must be permanent employees only

5.

CA to elected officials only for official travelling expensesSlide12

General Guidelines(COA Circular 97-002, RMO Circular 2009-002)

6.

Duly appointed or designated DOs may perform disbursing functions

No transfer of CA from one AO to anotherSlide13

General Guidelines

(COA Circular 97-002, RMO Circular 2009-002)

8.

CA shall be used solely for the specific legal purpose as granted

9.

CA shall not be granted for payment of infrastructure projects or project basis undertakingSlide14

General Guidelines

(COA Circular 97-002, RMO Circular 2009-002)

10.

Not to be used for encashment of checks or liquidation of previous CA

11.

CAs for a particular year should not be used to pay expenses of other yearsSlide15

General Guidelines

(COA Circular 97-002, RMO Circular 2009-002)

12.

CA for special time-bound undertaking must be liquidated within one ( 1 ) month from the accomplishment of the purpose

13.

CA no longer needed/not used for a period of 2 months should be returned to the treasurerSlide16

General Guidelines (COA Circular 97-002, RMO Circular 2009-002)

14.

All CAs should be liquidated at the end of the year except petty cash fundSlide17

Cash Advance for Official Travel

(Local and Foreign)

Governed by COA Circular No. 96-004 dated April 19, 1996

Both official local and foreign travels shall be treated and accounted for as cash advance

Shall not require bonding of the travelling official or employeeSlide18

General GuidelinesMiscellaneous Operating Expenses

(Sec. 4.3, COA No. 97-002)

Not for Regular Expenses, i.e., rentals, subscriptions, light/water (utilities)

Not more than Php15,000 per transaction, except when allowed by law &/or COA

No splitting of transactionsSlide19

General GuidelinesField Current Operating Expenses

(Sec. 4.4, COA No. 97-002)

Used to pay salaries/wages of field employees and miscellaneous operating expenses

No limits to payment for each transactionSlide20

General GuidelinesField Current Operating Expenses

(Sec. 4.4, COA No. 97-002)

All payments approved by head of field office

CA limited to two month requirement

Report of disbursements w/in 5 days after each month by AOSlide21

Documentary Requirements

Application for CA

(Sec. 4, COA Circular No. 97-002

)

Copy of authority from Agency head (attach to initial CA)

Copy of Bond (attach to initial CA)

Payroll, estimate of expenses, budget for COE of field office or activitySlide22

Liquidation of

Cash AdvancesSlide23

Time to Liquidate(5.1.1 COA Circular 97-002

)

Salaries, wages etc.

– 5 days after each fifteen (15) day/end of the month pay period.Slide24

Time to Liquidate(5.1.2 COA Circular 97-002)

Petty Operating Expenses and Field Operating Expenses

– within 20 days after the end of the year; subject to replenishment as frequently as necessary during the year.Slide25

Time to Liquidate

OFFICIAL TRAVEL

– within 60 days after return to the Philippines in case of

Foreign Travel

(3.1.2.1 COA Circular 96-004, EO 248)

or within 30 days after return to his permanent official station in case of

Local Travel

(5.1.3 COA Circular 97-002) Slide26

Local Travel, what to do when….

Trip is cancelled –

REFUND

in full.

Trip is cut short or terminated in advance of the itinerary –

REFUND

excess payment, IMMEDIATELY upon cancellation or termination of the trip. Slide27

Foreign Travel

Governed by COA Circular No. 96-004 dated April 19, 1996

Salaries may be suspended until cash advance has been liquidated

(3.1.2.1, COA Circular No 96-004)Slide28

Liquidation of CA(Sec. 5, COA Circular No. 97-002)

Documents required to support liquidation

Salaries/Wages

– Report of Disbursements with payrolls, vouchers, DTRs, approved leaves, etc.Slide29

Liquidation of CA(Sec. 5, COA Circular No. 97-002)

Misc Operating Expenses

Report of Disbursements w/ support docs

Approved Requisition & Issue Voucher w/ Cert.

of Emergency Purchase, if necessary

Receipts, Sales Invoices

Cert. of Acceptance/Inspection

Trip Ticket (if for fuel)

Other pertinent docs required by nature of expense Slide30

Liquidation of CA(Sec. 5, COA Circular No. 97-002)

Current Operating Expenditure

Same as the previous

Canvass of at least 3 Suppliers (except when purchase made while on official travel)

Slide31

Liquidation of CA(Sec. 5, COA Circular No. 97-002)

Official Travel

COA Circular No. 96-004

Certificate of Travel Completed

Plane, boat, bus tickets

Hotel room/ lodging bills

Certificate of Appearance or

Accomplishment Report

Slide32

Responsibility of Agency Head(Sec. 8, COA Circular No. 97-002)

“It shall be the responsibility of the Head of the Agency to ensure the proper granting, utilization and liquidation of all cash advances in accordance with these rules and regulations”Slide33

Responsibility of the Accountant(only in cases of travel cash advance pursuant to Circular 96-004)

1. The accountant shall retain a copy of the travel advance voucher and the itinerary of travel. He shall keep an index of the cash advances made by each official/employee and shall monitor the liquidation of the said cash advances;Slide34

Responsibility of the Accountant (only in cases of travel cash advance pursuant to Circular 96-004)

2. In addition the accountant shall:

a. Send within ten (10) days before the expiration of the 30 or 60 days period specified under Section 16, of EO 248, a written reminder under signature of the head of the agency or his duly authorized representative, enjoining the official or employee concerned to liquidate his travel cash advance. This is to preclude complaints arising from suspension of salaries due to non-liquidation of travel advances. Slide35

Responsibility of the Accountant (only in cases of travel cash advance pursuant to Circular 96-004)

b. Delete the name of the official or employee from the subsequent payrolls until such time that the travel cash advance has been fully liquidated, if the official or employee concerned fails to liquidate the cash advance within the prescribed period.Slide36

Responsibility of the Accountant (only in cases of travel cash advance pursuant to Circular 96-004)

c. Verify the liquidation voucher and supporting documents, and record the same in the books of accounts subject to the post audit by the auditor.Slide37

Duties & Responsibilities of the COA Auditor

Upon failure of the AO to liquidate his cash advance within two (2) months for AOs holding office within the station and three (3) months for AOs outside the station from date of grant of the cash advance, the Auditor shall issue a letter demanding liquidation or explanation for non liquidation;Slide38

Duties & Responsibilities of the COA Auditor

2

. If thirty (30) days have elapse after the demand letter is served and no liquidation or explanation is received or the explanation is not satisfactory, the Auditor shall advise the head of the agency to cause or order the withholding of the payment of any money due the AO;Slide39

Duties & Responsibilities of the COA Auditor

3.

The AO shall likewise be held criminally liable, for failure to settle his accounts. For this purpose the Auditor shall:Slide40

Duties & Responsibilities of the COA Auditor

a.

Execute an Affidavit stating the nature/purpose of the cash advance; the amount not liquidated/ accounted for; the fact that no liquidation or explanation has been submitted despite demand or if explanation has been submitted, the same is not satisfactory; the date the letter of demand was served on or received by AO; and other information which may be pertinent to the case;Slide41

Duties & Responsibilities of the COA Auditor

b

. State in the affidavit the violation of the provisions of Section 89 of PD 1445 and the penal provisions under Section 128 of the same law;

c. The affidavit shall be submitted to the COA Director concerned who shall refer the case to the appropriate Office of the Ombudsman, if the offense is committed in the regions or to the COA Legal Office for the filing of criminal proceedings, if the offense is committed within the Metropolitan Manila Area (97-002, Item 9.3)Slide42

Actions against AO for Failure to Liquidate on Time

Valid cause for the

WITHHOLDING

of salary; (97-002, 5.1.3 last par)

No additional cash advance

May be liable criminally, administratively and/or civillySlide43

PD 1445 GOVERNMENT AUDITING CODE OF THE PHILIPPINES

CHAPTER 5

ACCOUNTABILITY AND RESPONSIBILITY FOR GOVERNMENT FUNDS AND PROPERTY

“Section 102. Primary and secondary responsibility:

1. The head of any agency of the government is immediately and primarily responsible for all government funds and property pertaining to his agency.

Slide44

PD 1445 GOVERNMENT AUDITING CODE OF THE PHILIPPINES2. Persons entrusted with the possession or custody of the funds or property under the agency head shall be immediately responsible to him, without prejudice to the liability of either party to the government.”Slide45

Are you an Accountable Officer?

Art. 217, RPC (

Malversation

of Public Funds) is one who is accountable for public funds or property

Sec. 101 (1), PD 1445 (Government Auditing Code of the

Phils

) –

-every officer of any government agency

-duties permit or require the

possession

or

custody

of government funds or property

-and who shall be accountable therefore and for the safekeeping thereof in conformitySlide46

What is therefore CONTROLLING is……

the NATURE of the duties which he performs - the fact that, as part of his duties, he received public money for which he was bound to account, and NOT THE NOMENCLATURE OR THE RELATIVE IMPORTANCE THE POSITION HELD

(Querijero vs. People, GR 153483, Feb. 14, 2003)Slide47

Criminal ChargesP.D. 1445

“Section 128. Penal provision. Any violation of the provisions of Sections 67, 68, 89, 106, and 108 of this Code or any regulation issued by the Commission implementing these sections, shall be

punished by a fine not exceeding one thousand pesos or by imprisonment not exceeding six (6) months, or both such fine and imprisonment in the discretion of the court.”Slide48

Criminal Charges under the Revised Penal Code

Art. 218 – Failure to render accounts

- Accountable Officer

- Required by law or regulation to render accounts

- Failure to do so for 2 months after such accounts

should be rendered

Demand for accounting not necessary

Misappropriation not necessary; rationale is to compel public officers entrusted with government funds to render regular and timely account

Penalty - 6 months 1 day to 2 years 4 monthsSlide49

Criminal Charges under Revised Penal Code

Art. 217 –

Malversation

of Public Funds

- Public Officer

- Having custody or control of funds by reason of

the duties of his office

- Public funds for which he is accountable

- Appropriating, Misappropriating, or permitting

other person to take public funds

Presumption from failure to have duly forthcoming public funds upon demand

Demand only as a matter of procedure, evidentiary BUT not necessary

Penalty - 2 years 4 months to Reclusion

Perpetua

Slide50

Administrative Charges

Conduct Prejudicial to the Best Interest of the Service

“…unwarranted act of the respondent (which) resulted to an undue prejudice to the best interest of the service.”*

*Lucero, Antonio M., CSC Resolution No. 98-0649.Slide51

Administrative Charges

Dishonesty

“…the concealment or distortion of truth, which shows lack of integrity OR a disposition to defraud, cheat, deceived or betray and an intent to violate the truth.”*

*Civil Service Resolution No. 060538

“…for dishonesty to prosper, an absence of integrity, a disposition to betray, cheat, deceive or defraud, bad faith must be shown.”*

*

Arca

vs. Lepanto Consolidated Mining Company,

November 24, 1958Slide52

Administrative ChargesGrave Misconduct

“In the offense of the grave misconduct, the elements of corruption, clear intent to violate the law or flagrant disregard of established rule or regulation must be manifest.”*

*Landrito vs. CSC, 223 SCRA 551Slide53

COA CLEARANCE NOT GROUND FORDISMISSAL OF CRIMINAL CASE

“Indeed, while the COA may regard petitioner to have substantially complied with its accounting rules, this fact is not sufficient to dismiss the criminal cases. Beyond compliance with COA rules and regulations, the questions of fact to be established by evidence.”*

*Rodolfo E. Aguinaldo vs. Sandiganbayan, et. al., G.R. No.

124471, November 28, 1996Slide54

MC No. 155 issued by the OP on June 15, 1992

“Pursuant to COA Circular No. 90-331 dated May 3, 1990 & in the interest of the gov’t, all heads of departments etc, are hereby directed to require all gov’t. officials/employees in their respective offices with

cash advances, to settle and secure clearances from their accountabilities before being allowed to transfer or resign from their positions.”Slide55

Cash Advances

Presented

by:

Atty

.

Roline

M.

Ginez-Jabalde

Resident

Ombudsman-

DepEdSlide56

Observations

1.All the UCAs are beyond the time allotted for liquidation in clear violation of COA Circular No. 97-002 dated February 10, 1997

Slide57

Time to Liquidate(5.1.1 COA Circular 97-002)

Salaries, wages etc.

– 5 days after each fifteen (15) day/end of the month pay period.Slide58

Time to Liquidate(5.1.2 COA Circular 97-002

Petty Operating Expenses and Field Operating Expenses

– within 20 days after the end of the year; subject to replenishment as frequently as necessary during the year.Slide59

Time to Liquidate

OFFICIAL TRAVEL

– within 60 days after return to the Philippines in case of

Foreign Travel

(3.1.2.1 COA Circular 96-004, EO 248)

or within 30 days after return to his permanent official station in case of

Local Travel

(5.1.3 COA Circular 97-002) Slide60

Observations 2.

There is also a failure to restrict the issuance of additional cash advance in violation of Section 89 of P.D. 1445 otherwise known as the Government Auditing Code of the PhilippinesSlide61

Sec. 89 of P.D. 1445

“

No additional cash advance shall be allowed to any official or employee unless the previous cash advance given to him is first settled or a proper accounting thereof is made”Slide62

Observations

3. However, significant number of employees were able to subsequently obtain a cash advance although they have yet to liquidate the first cash advances granted to them.Slide63

Observations 4.

Sanctions prescribed under Sec. 16 of E.O. 248 and Item 3.3.2 (b) of COA Circular No. 96-004 for failure to liquidate cash advance within the prescribed period, are not imposed

.Slide64

Sanctions under Sec. 16 of E.O. 248

Title III Sec. 16

“ Payment of the salary of any official or employee who fails to comply with the provisions of this Section shall be suspended until he complies therewith” Slide65

Sanction under Item 3.3.2 (b) of COA Circular No. 96-004

“Delete the name of the official or employee from the subsequent payrolls until such time that the travel cash advance has been fully liquidated, if the official or employee concerned fails to liquidate the cash advance within the prescribed period”Slide66

Observations

5

. Failure on the part of the accountant to send a notice to liquidate within ten(10) days before the expiration of the 30 or 60 days period specified under Sec. 16 of EO. Slide67

Notice to Liquidate

This is a written reminder under the signature of the head of the agency or his duly authorized representative, enjoining the official/employee concerned to liquidate his travel cash advance

.Slide68

The failure on the part of the accountant to send a notice to liquidate & subsequent suspension of salary in case the concerned employee fails to liquidate the cash advance within the prescribed period may constitute violations of Items 3.3.2 of COA Circular No. 96-004 which can be a ground for administrative and criminal actions.Slide69

Actions made by the Resident Ombudsman

1.

Reminder Letters were sent to ninety-eight (98) officials & employees out of three hundred ninety-eight (398)

DepEd

officials & employees whose individual UCAs for travel expense purposes that exceeded ten thousand pesos. (P10,1000.00).Slide70

Actions made by the Resident Ombudsman

2. We also focused on the UCAs of Special Purpose Disbursing Officers (SDOs) that date back to the previous year (2010), some of which date as far back as 1998Slide71

Actions made by the Resident Ombudsman

3. To date, a total of nineteen (19)

officials &

employees submitted their response to the reminder letter

Sixteen (16) employees have informed our Office that they have submitted their full/partial liquidation reports

One (1) employee asked the Accounting Division to deduct from his salary his UCA

Two (2) employees stated that they lost the liquidation reports and are in the process of reconstituting the sameSlide72

Actions made by the Resident Ombudsman

In the case of the 16 employees who have submitted their liquidation reports, their names are still on the Statement of Aging of Cash Advances

Coordination with the Accounting Division reveals that the latter subject the reports to pre-audit prior to submitting the same to COA for review; pending the pre-audit stage, the cash advance is still recorded as

unliquidatedSlide73

Actions made by the Resident Ombudsman

Although several employees have submitted their liquidation reports several months ago, their names still appear on the list of

Unliquidated

Cash Advances

The pre-audit phase at the Accounting Division is a slow process due to the bulk of liquidation reportsSlide74

Actions against AO for Failure to Liquidate on Time

Valid cause for the

WITHHOLDING

of salary; (97-002, 5.1.3 last par)

No additional cash advance

May be liable criminally, administratively and/or civillySlide75

Cases Initiated by the Resident Ombudsman

Both criminal & administrative cases were already filed by our Office against erring officials & employees for

unliquidated

cash advancesSlide76

Thank you