COA: Comelec yet to liquidate P2B worth of cash advances used in 2022 polls

The Commission on Elections (Comelec) had accumulated over P2.1 billion worth of unliquidated cash advances as of the end of 2022, of which P2 billion was for expenses related to the 2022 polls, the Commission on Audit (COA) said.

In its annual audit report on the poll body, state auditors said that over P2.1 billion worth of cash advances remained unliquidated even when the purpose for which they were granted had already been served, which is a violation of Presidential Decree 1445 and COA Circular No. 97-002.

Of this P2.1 billion in unliquidated cash advances, P2.089 billion was granted in 2022 alone, broken down into the following: P1.9 billion for Comelec Special Disbursing Officers (SDO) and P188.9 million for Comelec officers and employees (OEs).

"The NLE (National and Local Elections) being completed on May 9, 2022, it was deemed that the purpose for which the above cash advances were granted has already been served. However, the same remain unliquidated as of December 31, 2022," state auditors said.

"The significant increase in the balance of the [Cash] Advances [for SDOs] account from December 31, 2021, to December 31, 2022, totaling P1,708,946,664.83, was due to the numerous cash advances granted to various Accountable Officers (AOs) for the 2022 National and Local Election (NLE) activities and the failure of the accountable officers to liquidate the same within the prescribed period, contrary to Section 5.1 of COA Circular No. 97-002," they added.

Comelec spokesman Rex Laudiangco confirmed the unliquidated cash advances but added that the liquidation process is continuing.

Laudiangco said all that remained to be settled in the said unliquidated advances is more than P717 million.

"We confirm that originally, at the beginning of the audit, indeed the unliquidated cash advances attributable to the Commission on Elections officials and personnel amounted to almost P2 billion," Laudiangco told GMA News Online.

"However, we must note that the  liquidation of cash advances is a continuing administrative process," he added.

"And with closer coordination with the Commission on Audit, all that remains to settled in the said unliquidared cash advances, as of July 12, 2023, is the amount of P717,154,871.57," Laudiangco said.

"This remaining amount are now continuously being liquidated as of writing," he added.

Highest amounts

The COA said provincial election supervisors got the highest amount: P558.6 million.

They were followed by the Comelec Region IV-A with P209.6 million, the Comelec Region 3 with P145 million, the Comelec Region 5 with P129 million, and the Comelec Bangsamoro Region with P122 million.

The offices of the Comelec chairman and commissioners accounted for P1 million.

"Had the Comelec strictly implemented/enforced the provisions of COA Circular No. 97-002, the unliquidated balances could have been minimized, and the accountable officers would have liquidated their outstanding cash advance before their separation from the service," COA said.

Resigned, dismissed

Further, COA said that P354.5 million of the unliquidated cash advances granted to 818 accountable officers who resigned, were dismissed, and/or were deceased were transferred to the Other Receivables account due to laxity in Comelec's monitoring of liquidation of cash advances.

In addition, 20 Comelec contract of service workers were granted P926,108.93 worth of cash advances as per diems to attend the Post-Election Activities for the May 2022 NLE, an amount already due for liquidation.

"The failure of Management (Comelec) to strictly enforce collection/settlement of the above receivables, laxity in the enforcement of rules and regulations in the grant, utilization, and liquidation of cash advances, as well as leniency in the processing of clearance from money and property accountability, which is a basic requirement for retirement, resulted in the accumulation of a significant balance of receivable account from officers and employees who are no longer in the service," COA said.

COA recommendations

Given the findings, COA recommended that the Comelec issue demand letters to concerned accountable officers for the immediate liquidation of their outstanding cash advances which are long overdue and institute necessary sanction, including the withholding of their salary, in accordance with Section 5 of COA Circular No. 97-002.

Other recommendations include:

• strict enforcement of collection/settlement of long outstanding receivables from the resigned/retired/dismissed officials/employees.
• if all efforts have been exerted and settlement thereof is nil, consider the preparation of the request for authority to write off the accounts from the Commission on Audit pursuant to COA Circular No. 2016-005
• ensure strict compliance with the guidelines on the grant, utilization and liquidation of cash advances.
• implement an effective monitoring system to ensure that all cash advances are liquidated at the end of the year to avoid their accumulation.

COA said Comelec agreed with these recommendations.

Laudiangco said Comelec chairman George Garcia "at the beginning of his term as Chairman of the Commission on Elections, included in his priority agenda, among others, the liquidation of unsettled cash advances."

Also in the agenda is the "institutionalization of reforms in all operations and administrative affairs of our agency, heightened with the enhanced policies of transparency,  accountability and inclusivity."

"Implementing reforms specifically in the financial processes of COMELEC, including the streamlining of procedures, developing simplified and more effective methods of submission of documentary requirements and transmittal of documents, great strides have been attained in this area," Laudiangco said.

"As Chairman Garcia had stated before, he expects this remaining amount to be fully liquidated, or otherwise settled and accounted for the soonest possible time," he added. — VBL, GMA Integrated News