The Commission on Audit (COA) has called out the Department of Education (DepEd) over its unsettled P12.297 billion notices of disallowances and suspensions, and the "substantial accumulated unliquidated" cash advances of P6.959 billion in 2023.

In its 2023 annual audit report, the COA blamed DepEd's "non-compliance with the existing laws, rules, and regulations" which resulted in the department incurring P10,099,733,281.52 in suspensions and P2,190,140,136.53 in disallowances.

The report covered DepEd's financial transactions during the time of Vice President Sara Duterte as the department's secretary.

The COA explained that a transaction is suspended in audit when it is temporarily disallowed or disapproved until the requirements on matters raised in the course of audit are complied with. 

A transaction is disallowed when it is disapproved either in whole or in part for being an illegal, irregular, unnecessary, excessive, extravagant, or unconscionable expenditure, it said.

In its report, the COA asked DepEd officials to "cause the immediate settlement of the suspensions, disallowances, and charges."

At the same time, the COA said DepEd had unliquidated cash advances amounting to P6,959,017,036.51 due to "lapses" in granting, liquidation, and monitoring of cash advances, as well as "disregard" of existing rules and regulations.

It pointed out that Section 21 of Executive Order No. 77 dated March 15, 2019 prescribes the reglementary period for the rendition of account on cash advances for local travels. Under COA Circular 97-002 dated Feb. 10, 1997, no additional cash advances shall be allowed unless the previous cash advance given to an official or employee has been settled, it said.

In 2023, the COA said that DepEd granted additional cash advances worth P280,511,139.96 despite non-liquidation of previous ones. It noted that there was P1,326,752,808.19 dormant/long-outstanding unliquidated cash advances, and from that amount, P15,860,194.17 was from the National Capital Region (NCR) and P3,933,928.22 was from Regional Office XII given to officials who have already retired, resigned, are deceased, or transferred. 

With its findings, the COA asked DepEd to immediately stop the practice of granting additional cash advances when liquidation of previous ones were not yet done, and send demand letters to concerned accountable officers still active in the service to settle all their unliquidated cash advances.

For outstanding cash advances which remained non-moving for 10 years or more, DepEd officials were asked to request authority from the COA to write them off.