Question & AnswerQ&A (LETTER OF INSTRUCTIONS NO. 746)
Cash advances must generally be liquidated within twenty (20) days from the accomplishment of the purpose for which they were granted.
Cash advances can be settled and liquidated either by returning the unspent money or by presenting regularly accomplished vouchers with proper receipts and evidence of payment, consistent with the purpose of the cash advance, subject to post-audit by the auditor.
The chief or head of the government agency concerned has the primary responsibility to ensure that government funds and property are safeguarded and properly liquidated.
Failure to liquidate cash advances upon demand shall be prima facie evidence that the accountable public officer has put such missing funds or property to personal use.
All outstanding cash advances as of December 31, 2011, must be settled and liquidated on or before January 31, 2013.
No, transfer, separation, or retirement from government service does not discharge an accountable officer from the duty to liquidate outstanding cash advances.
Heads of agencies must disseminate the Circular to all accountable officials, serve written notice demanding settlement of outstanding cash advances by December 15, 2012, and receive from the Chief Accountant a list of accountable officers with unliquidated advances.
They must ensure liquidation within prescribed periods, evaluate compliance with COA rules, report violations, and submit reports including aging of cash advances by February 28, 2013.
They may face criminal charges for malversation under Article 217, failure to liquidate under Article 218 of the Revised Penal Code, prosecution under Section 128 of P.O. No. 1445, suspension of salaries, and administrative proceedings.
The COA Circular No. 2012-004 itself constitutes the demand required by law, applicable even to those already separated or transferred from service.