Demand for Immediate Liquidation of Govt Cash Advances

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COA CIRCULAR NO. 2012-004: Demand for Immediate Liquidation of Govt Cash Advances

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Title Source: Supreme Court: Demand for Immediate Liquidation of Govt Cash Advances

Law: Coa Circular No. 2012-004

Decision Date: Nov 28, 2012

Heads of government agencies are mandated to ensure the immediate liquidation of all outstanding cash advances as of December 31, 2011, by January 31, 2013, with non-compliance resulting in potential criminal charges and administrative actions.

Law Summary

Procedures for Settlement and Liquidation of Cash Advances

Settlement by returning unspent money or presentation of complete vouchers detailing expenses.
Supporting documents must be proper receipts and evidence of payment.
Post-audit by concerned auditor is required.

Responsibility of Heads of Agencies

Under P.D. No. 1445, agency heads must ensure government funds and property are safeguarded from wastage.
Agency heads have primary responsibility for faithful care of funds.

Situation on Outstanding Cash Advances

Audit shows significant amount of unliquidated cash advances as of Dec 31, 2011.
Repeated demands for liquidation have not been complied with.

Legal Presumption on Non-Liquidation

Article 217, Revised Penal Code: Failure to produce funds/property on demand is prima facie evidence of personal use.

Final Demand for Liquidation

Demand to settle all outstanding advances as of Dec 31, 2011 by Jan 31, 2013.
Those previously notified must comply within their specified periods.
Definition of accountable public officer includes those separated or transferred but still liable.
Circular serves as formal demand under law.

Duties of Agency Officials

By Dec 15, 2012, agency heads must disseminate this Circular and notify officials with unliquidated advances.
Chief Accountant to provide list of accountable officers with outstanding advances.

Duties of the Commission on Audit (COA)

Audit Team Leader must ensure liquidation within prescribed periods.
Evaluate compliance with COA rules and report violations.
Submit compliance report by Feb 28, 2013, including aging and purpose of advances.
Submit vouchers and supporting documents to Directors and Chairperson.

Consequences of Failure to Liquidate

Failure to liquidate by Jan 31, 2013 may lead to malversation and criminal charges under Revised Penal Code and P.O. No. 1445.
Suspension of salaries will be ordered.
Administrative proceedings will be initiated.

Monitoring Compliance

Assistant Commissioners to monitor auditor compliance within their jurisdiction.

Effectivity

Circular effective immediately.
Previous inconsistent issuances modified accordingly.

END