COA: DOLE’s P1.57-billion unliquidated cash advances at risk of misuse

State auditors have flagged the Department of Labor and Employment (DOLE) over P1.57 billion in unliquidated cash advances, which it said are at “possible risk of misuse.”

In its annual report for 2020, the Commission on Audit (COA) said the cash advances were granted to labor attaches for the operations of Philippine Overseas Labor Offices, official travels, and the implementation of DOLE’s COVID-19 aid programs for workers.

These programs include CAMP or the COVID-19 Adjustment Measures Program, TUPAD or Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers, #BKBK or Barangay Ko, Bahay Ko, and AKAP or Abot Kamay ang Pagtulong.

“Insufficient observance of the laws, rules, regulations in the granting, utilization, and liquidation of cash advances… resulted in unliquidated cash advances totaling P1.572,152,901.75 even if their purpose had already been served,” COA said.

“Thus, exposing public funds to possible risk of misuse and non-recording of related expenses within the period these were incurred,” it added.

COA data showed that out of the P1.57 billion unliquidated cash advances, P967.75 million were for operating expenses, P597.82 million were advances to special disbursing officers, and P6.58 million were advances to officers and employees.

The DOLE Central Office had the biggest amount of unliquidated cash advances at P974.51 million.

State auditors told DOLE to send demand letters to those with outstanding balances and stop the practice of granting additional cash advances to those with outstanding unliquidated cash advances, among other recommendations.

COA said the DOLE Central Office explained that “expenses incurred prior to the authority to handle cash advances were used during the TWG (Technical Working Group) meetings on July 25 and September 10, 2019.”

The TWG meetings were held "due to the urgent need to review the various legislative proposals pending in the Senate and House of Representatives as per Administrative Order No. 279, series of 2019."—LDF, GMA News