THE Department of Education (DepEd) posted a worse record on Notices of Suspension (NS), Notices of Disallowance (NDs), and Notices of Charge (NCs) in 2023, with the total unsettled amount climbing by P903 million from P11.394 billion to P12.297 billion from January to December 31, 2023.
The year 2023 was the last full year that Vice President Sara Duterte served as DepEd secretary before resigning from the post effective July 19, 2024. She was replaced by former Sen. Juan Edgardo “Sonny” Angara.
Auditors blamed the DepEd’s “non-compliance with existing laws, rules and regulations” for the increase in unsettled suspensions (P10.1 billion), disallowances (P2.19 billion), and charges (P140.14 million).
A copy of the 2023 DepEd audit report was submitted to the Office of the Secretary on July 31, 2024.
A breakdown of the Notices of Suspension showed there were settlements totaling P3.245 billion during the year but this was overshadowed by new NS issued amounting to P4.113 billion.
The settlement of disallowances during the same period amounted to P23.445 million but this was less than half of the new NDs issued totaling P58.057 million.
The one silver lining was the Notice of Charge which recorded settlements of P177,648.39 against zero NC issued in the past year.
COA Circular No. 2009-006 explains that a transaction that can result in fund losses to the government is deemed suspended in audit “when it is temporarily disapproved until requirements on matters raised in the course of the audit are complied with.”
On the other hand, a disallowance against a transaction may cover the whole or only a part “for being an illegal, irregular, unnecessary, excessive, extravagant, or unconscionable expenditure.”
Finally, an NC is issued on transactions where “the correct amount of revenue/receipt due the government is not received by the agency as a result of under appraisal/assessment/collection.”
The table of suspension showed DepEd Regional Office 8 (Eastern Visayas) had the biggest amount to explain at P6.365 billion, followed by Regional Office 5 (Bicol Region) at P1.56 billion.
The DepEd Central Office was listed as having the highest sum disallowed at P1.164 billion or 53 percent of the total unsettled disallowance of P2.19 billion.
Despite the assurance by the DepEd management during the 2022 exit conference that it will “cause the immediate settlement of suspensions, disallowances, and charges” in the succeeding fiscal year, auditors reported that there was zero settlement of the P1.164 billion disallowance since the beginning balance has not moved at all from January 2023.
For the Notice of Charge, Regional Office 3 (Central Luzon) has P2.84 million, National Capital Region has P2.24 million, and Central Office has P1.83 million.
In a separate finding, the audit team noted that the DepEd still has unliquidated cash advances (CAs) totaling P6.96 billion as of the yearend 2023.
Auditors blamed this on weak fiscal control by the DepEd management.
“The existence of substantial accumulated unliquidated CAs is attributable to the lapses in the controls placed by Management in the granting, liquidation and monitoring of CAs, in disregard of the existing rules and regulations,” auditors said.
Under Executive Order No. 77, no cash advance was supposed to be granted unless the prior amount released had been properly liquidated. This rule appears to have been inconsistently applied.
Regional Office 7 (Central Visayas) had the biggest unliquidated CA at P1.31 billion, followed by Regional Office 8 (Eastern Visayas) at P1.014 billion.
The audit team traced P280.51 million to new cash advances that were approved by the DepEd despite the non-liquidation of previous ones.
Dormant or long outstanding cash advances without liquidation years beyond the prescribed period, meanwhile, amounted to P1.327 billion.
The DepEd agreed to implement recommendations from the Commission on Audit, including halting the grant of additional cash advances unless previous amounts released are fully liquidated, sending out demand letters to account officers who are still in active service, withholding sums from the salaries of account officers with outstanding Cas, imposing appropriate penalties personnel with unliquidated CAs.
