COA flags DepEd over P13.8 billion unexplained expenses

The Department of Education (DepEd) has accumulated P13.9 billion worth of expenses with no legal basis or adequate documentation, the Commission on Audit  (COA) said.

According to COA’s annual audit report on DepEd, the P13.9 billion worth of undocumented, if not baseless expenses ranged from P3,000 to as much as P13 billion for 2018.

The largest amounts of unexplained expenses for DepEd in 2018 are:

• P13.2 billion various expenses (DepEd Region 7);
• P312 million for trainings/seminars and midyear/annual planning and assessment activities conducted in lavish resorts and tourist spot locations (DepEd Central Office);
• P101 million worth of various expenses (DepEd Region 3);
• P45 million various expenses (Region 2);
• P34.5 million for various expenses (DepEd Region 9);
• P29 million various expenses (DepEd Region 1);
• P24 million fund transfer for School Based Feeding Program in Compostela Valley (DepEd Region 11);
• P20.7 million for repair and construction expenses sourced from Basic Educational Facilities Fund (DepEd Region 10);
• P17 million for repair and rehabilitation of school building projects (DepEd Region 7) and
• P11 million payment for the PCAB contractor even if the said contractor’s license is expired.

Given these findings, state auditors tasked the DepEd to submit the lacking documents to avoid audit suspensions; refrain from conducting out-of-town meeting/seminar/conference unless extremely necessary; strictly comply with the prescribed rules and regulations on the payment of salaries and wages, monetization, traveling/training, fuel, oil and lubricants, repairs and improvements, and other expenses; and d) ensure that all disbursements/utilization of government funds are authorized and properly supported with the necessary documents.

State auditors said that the management of concerned offices were amenable to the audit observations and recommendations and commented that they will ensure the complete submission of the lacking documents as identified.

Likewise, COA said that the DepEd assured the state auditors' future transactions will be supported by the complete documentary requirements as prescribed by law.

On top of unexplained P13.8 billion expenses, DepEd also posted P2.7 billion unliquidated cash advances in 2018.

The same annual audit report on DepEd showed that of the P2.7 billion unliquidated cash advance, P293 million was incurred more than a year ago, while P15 million was from retired/resigned/transferred/deceased employees of regions NCR, III, IV-B and V, among other deficiencies.

By regions/office, Region 6 posted the highest amount of unliquidated cash advance with P543 million, followed by National Capital Region with P514 million.  Ranking third is Region 5 with P501 million.

Rounding up the top 10 DepEd offices with the most amount of unliquidated cash advance were: Region 7 with P448 million, Region 12 with 300 million, Region1 3 with P96 million, DepEd Central Office with P88 million, Region 4-B with P80 million, Region 4-A with P60 million and Region 3 with P38 million.

“The significant amount of unliquidated cash advances is a result of the leniency of the DepEd in granting, liquidation and monitoring of cash advances, which is contrary to existing COA rules and regulations, and DepEd guidelines relative thereto,” state auditors said.

COA attributed the huge amount of unliquidated cash advance to the following:

1. grant of additional cash advances despite non-liquidation of previous cash advances;
2. incomplete documentary requirements in the granting and liquidation of cash advances;
3. granting of cash advances to personnel without bond, transfer of cash advances from an accountable officer (AO) to another AO/official/personnel;
4. non-preparation/non-maintenance of required report/records;
5. cash shortage;
6. inappropriate safekeeping procedures for cash accountabilities; and
7. delayed release of Maintenance and Other and Operating Expenses resulting in reimbursement of expenses instead of cash advance, among others.

COA then called on DepEd to enforce strict compliance with the rules and regulations on the granting, utilization, and liquidation of cash advances, as well as demand settlement, specifically those pertaining to long outstanding cash advances.

Likewise, state auditors said the DepEd should impose sanctions on erring officials and/or employees who unjustifiably disregard the aforecited rules and regulations; and request write-off with complete documentation of long outstanding cash advances, of which, settlement is uncertain and nil, after having exhausted all appropriate remedies for their liquidation.

The management agreed with COA’s recommendations. —LDF, GMA News