THE Commission on Elections (Comelec) ended 2023 with P6.57 billion in unliquidated cash advances, which was 245.77 percent higher than the beginning balance of P1.9 billion as of December 31, 2022.
During the year, approved cash advances amounted to P6.985 billion, while liquidations and adjustments was only at P2.314 billion.
State auditors said the increase was primarily attributed to the numerous cash advances granted to various accountable officers (AOs) in relation to the Barangay and Sangguniang Kabataan Elections (BSKE) held on October 30, 2023.
On the other hand, the lateness of the said election and related activities, as well as the due date of December 15, 2023, were blamed for the low percentage of liquidation.
According to the Accounting Division of the Comelec, pending liquidation reports and refund of advances submitted at yearend was at P3.768 billion pertaining to the 2023 cash grants.
“This implies that the AOs exerted their efforts in liquidating their cash advances and reducing their unliquidated balances, but due to the voluminous transactions of the Comelec, recording was not reflected immediately,” the audit team said.
The Commission on Audit (COA) recommended that the Comelec Finance Services Department issue demand letters to concerned AOs for the liquidation of their outstanding cash advances, particularly those that are already overdue.
While the grant of cash advances was necessary to meet obligations and perform the necessary functions related to poll activities, state auditors said the Comelec failed to comply with the prohibition in COA Circular No. 97-002 against the release of additional cash advances to officials or employees unless all prior cash advances have been fully settled.
“Review of the Advances accounts disclosed that 1,429 out of 2,628 or 54.38 percent of all AOs were granted additional cash advances during CY 2023 totaling P6,134,409,544.54 despite non-liquidation or non-settlement of the previous cash advances,” the audit team said.
A breakdown of the P6.134 billion showed the biggest cash advances were released to accountable officers in Region 4 (P718.73 million), National Capital Region (P694.52 million), Region 3 (P581.72 million), Region 7 (P465.47 million), and Region 5 (P373.63 million).
“Granting of the additional cash advances with different purposes from the previous cash advances resulted to the accumulation of cash advances which is contrary to the cited COA Circular and indication of lack of proper monitoring and weak internal control in the granting, utilization and liquidation of cash advances,” the COA said.
The Comelec agreed with the auditors’ recommendation to require the Finance Services Department to enforce the restriction against granting additional cash advances to accountable officers with unliquidated cash advances.
