The Commission on Audit (COA) has recommended stricter measures, including withholding salaries and imposing penalties, against Department of Education (DepEd) officials who have failed to liquidate cash advances (CAs) amounting to Php 6.96 billion as of December 31, 2023.
In its 2023 Annual Audit Report, the COA flagged DepEd for its failure to comply with laws and regulations, which led to the accumulation of unliquidated cash advances.
The audit uncovered irregularities such as the release of CAs without proper authorization, fund transfers between accountable officers (AOs), failure to secure appropriate bonds for AOs, and the use of CAs to pay for Service Recognition Incentives (SRI) instead of direct payments.
Regions with the Highest Unliquidated Balances
The regions with the largest outstanding balances are:
Region VII (Central Visayas): Php 1.31 billion
Region VIII (Eastern Visayas): Php 1.01 billion
Region XII (SOCCSKSARGEN): Php 819.4 million
Region IX (Zamboanga Peninsula): Php 537.1 million
Region VI (Western Visayas): Php 513.9 million
NCR (National Capital Region): Php 301.9 million
To address the issue, COA has proposed the following actions:
1.Stop granting new cash advances to officials with pending balances.
2.Issue demand letters to active employees to compel liquidation.
3.Withhold salaries and other dues of delinquent AOs until they settle their obligations.
4.Impose penalties in line with Civil Service Commission (CSC) guidelines for delays.
5Write off dormant accounts unresolved for over a decade.
COA’s report also highlighted challenges in recovering the funds, particularly in cases where accountable officers have retired, resigned, gone AWOL (absent without leave), or transferred to other agencies.
The findings and recommendations aim to strengthen accountability and ensure proper handling of public funds within DepEd.
The agency is expected to take swift action to resolve these unliquidated cash advances and improve financial management practices moving forward.
