The Commission on Audit (COA) has cautioned government agencies against the use of credit cards in paying expenses for meetings, events and even for overtime meals of personnel.

The COA said the use of credit cards defeats the purpose of the Petty Cash Fund of government offices and violates Section 5.3.5 a.c. of COA Circular No. 2021-014 which provides guidelines on the use of electronic collection (e.Collection) and electronic payment (e-Payment) for government transactions.

The unauthorized use of credit cards was cited by the COA in its 2024 audit report on the Film Development Council of the Philippines (FDCP).

The COA said that the FDCP made 19 credit card payments from May to July 2024 of P426,219 which were for expenses during meetings, events, and overtime meals of employees.

It said that “no government entity may be allowed to use credit cards to pay for government transactions unless they can reasonably protect such use against misuse and misappropriation."

It stressed that “petty cash funds should be readily accessible in the office, safeguarded by mechanisms for preventive controls, and can be readily accessed when the need arises."

The COA recommended that FDCP employees should refrain from using their credit cards for such purchases and transactions.

However, FDCP employees appealed to the COA for the continued use of credit cards due to the convenience they offer, especially in the absence of petty cash custodians.

At the same time, the COA also raised concern over the financial assets of FDCP, which, the commission said, were exposed to potential risk of loss, misuse, or fraud.