Auditors questioned a P25- million cash advance made by the Cebu provincial government charged to its intelligence funds.
The amount was released in five installments in April 2010 or a month before the May local and national elections.
The Commission on Audit in Central Visayas (COA-7) did not ask what the money was used for since this is liquidated directly with the central COA office in Manila.
It noted procedural lapses since the fund was disbursed by the provincial treasurer instead of a high ranking PNP officer.
The COA also noted that the cash advances were made without receipts, liquidation vouchers and a report to the main COA office.
The P25 million was released in five checks of P5 million each in April last year.
COA questioned Provincial Treasurer Roy Salubre’s designation as the Special Disbursing Officer (SDO) of cash advances for confidential and intelligence expenses.
Under a memo circular of the Dept. of Interior and Local Government 99-65, the SDO of intelligence funds should be the PNP regional director for amounts over P1 million and the PNP provincial director for an annual allocation of P1 million and below.
Another DILG circular said the governor or mayor may assume the responsibility as disbursing officer or may designate the PNP regional or provincial director.
The checks were issued between April 12 to 30, 2010, and encashed at least a week after release.
COA said they haven’t received a report or transmittal letter about the subsequent cash advances as required under their Audit and Liquidation of Intelligence and Confidential Funds of Local Government Units.
In response, Salubre said they submitted all liquidation documents to the COA central office but didn’t receive any reply of credit advice.
In a separate interview yesterday, Capitol consultant Rory Jon Sepulveda said the province can justify its use of the P25-million cash advances. He gave not details.
State auditors said the Capitol only submitted the liquidation documents once.
They said the papers should have been submitted on a staggered basis and done before another cash advance was issued.
Salubre said he was chosen by Cebu Gov. Gwendolyn Garcia based “on trust and confidence.”
He said the governor has the discretion to delegate SDO duties due to the “nature and intent of intelligence or confidential undertakings” of the cash advance.
Salubre was picked as SDO for confidential and intelligence expenses.
But COA cited a circular from the Department of Interior and Local Govenrment (DILG) that prescribes that only police officials are allowed to disburse cash from the intelligence fund.
“The circulars don’t have a provision allowing the local treasurer to be the Special Disbursing Officer of cash advances for confidential and intelligence activities in local governments,” the COA report said.
The PNP regional director would be the designated personnel in provinces and cities if the total allocation exceeds P1 million.
The provincial PNP director would be the designated personnel for municipalities with amounts of P1 million and below.
COA also took the Capitol to task on the allowances and retirement benefits of judges, the cell phone expenses of its officials and employees, infrastructure projects and financial assistance to the Cebu Chamber of Commerce.
State auditors also questioned the hiring of 45 Capitol consultants without proper evaluation and and non-observance to the provisions required by their office in the procurement of consultancy services.
In their report, COA said the governor’s office has 23 consultants, the vice governor has one consultant and the Provincial Board has 21 consultants who are paid at least P1 to P26,741 monthly.
COA said the province hired the consultants without undergoing public bidding.
They also said 12 of the consultants had no files of their resumés so their capabilities could not be assessed.
They also cited a previous ruling in which allowances given to judges should not be equated with compensation for purposes of computing their retirement benefits.
About P1.8 million was given to three judges representing their retirement benefit at P360,000 each.
But the Provincial Budget Office said the five-year lump sum retirement is based on the monthly allowances granted by Capitol to the judges and included on their budget.
The auditors said the allowances given to judges and prosecutors could not be represented as transportation allowance but as an incentive or honorarium.
The state auditors also called the Capitol’s attention on the excessive mobile phone expenses of some officials and the lack of documents on infrastructure projects of the province.
COA also noted an excessive amount of incentives of 1,619 officials resulting to irregular disbursements worth P16,768,362.35.
They said the Capitol disbursed payrolls worth P32,958,362.35 last year but only P16,190.000 is allowable.
The auditors likewise questioned the Capitol’s P3 million financial assistance to the Cebu Chamber of Commerce and Industry (CCCI) issued last November and used in their celebration of the Cebu Business Month.
COA said the projects for the financial assistance were not specified.
They said the province should ensure that project activities should be clearly defined and the assistance strictly monitored and reviewed.