Mindoro Occidental incurred a cash deficit of over P211 million, thereby putting in adverse condition its reputation and credit standing, a recently released annual audit report of the Commission on Audit (COA) revealed.
COA said the provincial government has failed “to manage its funds efficiently” that the net cash available at the end of 2019 was not enough to cover current obligations.
Of the P211,658,638.42 in shortfall, a total P201,746,477.82 shortage was found in the general fund while P9,912,160.60 was for the trust fund.
Auditors warned that as a result of the cash shortage, the provincial government faced the risk of legal suit from creditors for unpaid obligations.
“Hence, the current obligations and reserve were not backed up with cash, which could adversely affect the prompt delivery of basic services and implementation of much-needed projects of the PGOM,” CA noted.
Gov. Eduardo B. Gadiano quickly blamed the previous provincial administration for the “accumulated deficiencies”.
The incumbent said that upon his assumption in 2019, appropriate fund management was immediately introduced for programmed-based disbursement, adherence to the provisions of the Government Procurement Law, policy-based budget and regulated grant of cash advances, among others.
But COA noted that there were also lapses in the grant and liquidation of cash advances as unliquidated balances from 2001 to 2018 remained outstanding in 2019.
Audit examiners also pointed out that malversation charges have not been filed by the provincial government against 70 accountable officers who failed to liquidate cash advances and other accountabilities amounting to P1,093,491.93.
According to COA, 2019 cash advances totalilng P460,579,200.24 have not been liquidated within the prescribed period while cash advances as huge as P8.5 million were granted to 35 officials and employees despite the non-settlement of previous advances.
Analysing Mindoro Occidental financial condition in 2019, audit examiners disclosed that the provincial government has yet to pay officers and employes over P46 million for their salaries, benefits, and reimbursement of travel expenses.
Over P132 million representing goods and services received are under the accounts payable.
“Intra-Agency payables such as due to BIR, GSIS, Pag-IBIG and PhilHealth totaling P20,079,967.58 are amounts withheld from officers and employees that should be remitted promptly to avoid imposition of interests, penalties and surcharges,” COA stated.
Aside from the said liabilities, auditors concluded that the cash position of the provincial government may have also been affected by P32,042,366.45 in long outstanding receivable.
“The failure of the management to increase its collection from receivables, regulate the grant of cash advances and revert unclaimed obligations earlier as well as use of funds other than their intended purposes resulted in cash deficit of P2112,658,638.42,” COA reported.
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