ARMM-DepEd unliquidated cash advances of P100M tops in region, By Peter J.G.Tabingo

THE Department of Education-Autonomous Region in Muslim Mindanao (DepEd-ARMM) office posted the highest unliquidated cash advances in 2010, according to the yearend report of the Commission on Audit. The COA said DepEd-ARMM accounted for P10.72 million or more than 68 percent of the P15.57 million total accountabilities of the Regional Autonomous Government. Auditors clarified the amount included P7.37 million unsettled advances dating back to 2009 and prior years. The regional secretary, Baratucal L. Caudang, took over the post in June 2010. The Department of Transportation and Communication–ARMM was a far second with P1.18 million; Office of the Regional Governor with P1.01 million; and Department of Environment and Natural Resources-ARMM with P970,039. The COA report said DepEd-ARMM's figures were worsened by P3.35 million in travel expenses that were unliquidated. "Our audit showed that the unliquidated cash advances for travel increased by 69 percent or P3,351,978.59, increase from that of the previous year. We also observed that a long period has lapsed before cash advances for travel were eventually liquidated," auditors said. Executive Order No. 298 of 2004 requires that receipts for local travel expenditures should be submitted within 30 days and foreign travels within 60 days. COA recommended that salaries and other cash benefits of officers with standing accountabilities be withheld until their cash advances are fully settled. DepEd-ARMM was also tops in unremitted collections for withheld taxes and employees contributions to the Government Service Insurance System (GSIS), Home Development Mutual Fund (HDMF) and PhilHealth. "Trust Liabilities amounting to P583,900,377.96 remained unremitted at yearend, depriving the government of immediate utilization of the amount and exposing government funds to possible misappropriation/misapplication," COA report said. Records showed DepEd-ARMM had under-remittances amounting to P7.82 million due the Bureau of Internal Revenue; P555.89 million to GSIS; P8.11 million to HDMF; and P11.59 million to PhilHealth. The COA report said the Department of Agriculture is only the other office with such accountability amounting to P487,650.77. DepEd-ARMM clarified that as of March 2011, the Department of Budget and Management had remitted P345.85 million of the amount due GSIS. It said the bulk of its under-remittance to BIR – P7.31 million out of P7.82 million – "refers to transactions of the previous administration." The regional office assured COA that it is verifying figures for its accountabilities with PhilHealth and HDMF and will remit these amounts once they are confirmed.