STATE auditors have discovered more than P1.4 billion in unutilized cash or income held in depository accounts of various centers for health development (CHDs) and government hospitals all over the country instead of being remitted to the national treasury.
The biggest amount totaling P1.016 billion was found in accounts maintained by the Mariano Marcos Memorial Hospital and Medical Center (MMMHMC) under the Department of Health (DOH) – Region 1 listed as “dormant/unutilized cash/hospital income.”
“Unauthorized and unnecessary balances in depository accounts as well as revenues and other receipts collected totaling P1,417,203,819.35 remained unremitted to the BTr (Bureau of Treasury) contrary to pertinent laws and regulations,” the Commission on Audit (COA) said.
In the 2023 audit report on the DOH, the audit team said that under the 2023 General Appropriations Act (GAA), the Department of Finance (DOF)-Department of Budget and Management (DBM)-COA Joint Circular No. 4-2012, DBM Budget Circular No. 2004-5A, and COA Circular No. 2015-001, it is mandatory for government agencies to remit any revenue and money in unauthorized accounts, as well as excess or idle funds for projects, to the treasury to form part of the General Fund.
It said the accumulation of more than a billion in unutilized income of MMMHMC represented “unrestricted and idle cash-in-bank.”
“The material cash surplus would give an impression that there are inadequacies in the management of financial resources of the hospital,” auditors said.
In its reply to the audit observation, the MMMHMC management acknowledged the unutilized balance as of December 31, 2023, and notified the COA that the money has been earmarked for Early Procurement Activities in 2024 “for supplies, equipment for specialty centers, operating expenses, and IT infrastructure.”
It added that the head of the Accounting Unit will conduct a quarterly analyses of cash accounts to ensure transparency and accountability while preventing similar incidents in the future.
The audit team also found P207,009,679.23 in four bank accounts of Zamboanga CHD under DOH-Region 9 “without specific authority/legal basis.” Auditors said the amount should have been remitted to the BTr.
On the other hand, P80.49 million was traced to Eastern Valley CHD in DOH-Region 8 but the sum was reverted to the BTr after the planned program or activity failed to materialize.
The Northern Mindanao Medical Center (NMMC) under DOH-Region 10 was also listed with P57.656 million representing underspending resulting in lapsed allocation due to delayed or cancelled projects.
The COA reminded the CHDs and hospitals that cash kept in their custody without specific purposes deprive the national government of scarce resources.
“The inability to remit to the BTr the cash balances is contrary to laws and regulations and deprived the national government of the use of idle cash for other priority projects and defeated the purpose of maximizing the use of financial resources,” the COA said.
Auditors said the DOH secretary has agreed to require the heads of CHDs and various government hospitals to immediately transfer the unauthorized, unnecessary, idle or dormant cash balances to the BTr.
