CASH advances close to P10 million remain undocumented from the Social Fund of the Autonomous Region in Muslim Min-danao (ARMM), the Commission on Audit reported.
State auditors revealed in their 2012 report on the Social Fund of the region that a total of P9.72 million is yet to be liquidated from the region’s coffers.
Auditors reviewed three accounts of ARMM Social Fund: the IBRD 7912, JICA 235 and the General Fund.
The fund aims to increase projects that will deliver basic social services and employment opportunities to conflict-affected and poor communities.
Data showed that P843,943.87 were due from officers and employees who had drawn from these accounts. Other receivables totaled P2.91 million, while advances to officers and employees had the largest part of non-reporting at P5.96 million.
“Moreover, several unliquidated cash advances belong to the same employees. It simply connotes that such employee is being allowed to take additional cash advance without settling first his or her previous cash advance, thus, contrary to Section 89 of [Presidential Decree] 1445,” the report noted, referring to the Auditing Code of the Philippines.
The Commission has been strict in urging government agencies to liquidate advances since non-liquidation hint sources of corruption.
Auditors asked the officials and employees to settle immediately their dues, “otherwise, withhold the salaries of erring employees equal to their unliquidated cash advances.”
The audit team also urged the ARMM leadership to not allow any official and employees any cash advances unless the previous dues had been settled.
The provincial capitol commented that all cash advances, which remain unliquidated as of March 15, 2013 “will be dealt with drastically.”