A total of P95.35 million in cash advances (CAs) by officials and employees of the Department of Trade and Industry (DTI) in 2022 remained unliquidated, the Commission on Audit (COA) said.
COA warned that “the non-enforcement of settlement/liquidation of outstanding cash advances within the prescribed period exposes government funds to the risk of possible loss, misuse and/or misapplication.”
It said that if the CAs remain unliquidated, the DTI should deduct from responsible officials and employees the corresponding amount, if necessary.
The CAs of DTI officials and employees for 2022 were for operating expenses, special purpose or time-bound undertakings, and local and foreign travels.
In its annual audit report, COA said that the failure of the DTI’s central office (CO) and its 13 regional offices (ROs) to liquidated the cash advances was due to its failure to monitor them.
"Of the total cash advances for payroll, operating expenses, official local and foreign travels and special purpose/time-bound undertakings granted during the year and for prior years amounting to P837,169,232.68, the amount of P95,351,058.92 or 11 percent was not liquidated at year-end," COA said.
It noted that the issue on unliquidated balances can be blamed on the non-submission of the required reports for liquidation or non-liquidation of the cash advances within the prescribed period as provided for under COA Circular No. 97-002, as well as the failure of DTI management to strictly monitor the CAs.
It recommended that the DTI should require its CO and Ros I, II, III, IV-A, IV-B, V, VI, VII, VIII, IX, X, XI and XIII to strictly comply with the provisions of COA Circular No. 97-002 on the grant and liquidation of their cash advances.