Orientation on Cash Management and Control System

Penal Provision of PD 1445 (Government Auditing Code)

Section 128. Penal provision. Any violation of the provisions of Sections xx 89, xx of this Code or any regulation issued by the Commission implementing these sections, shall be punished by a fine not exceeding one thousand pesos or by imprisonment not exceeding six (6) months, or both such fine and imprisonment in the discretion of the court.

Section 89. Limitations on cash advance. 

A cash advance shall be reported on and LIQUIDATED as soon as the purpose for which it was given has been served.

The mere failure to TIMELY liquidate the cash advance is the gravamen of the offense (People v. Sandiganbayan, G.R. No. 174504, March 21, 2011)

What is an accountable officer?

The person who be reason of his office or duty ought to be or deemed to be in possession or custody of government funds or property.

A holder of PERMANENT position and shall be properly BONDED in accordance with law.

Types of Cash Advance

Regular CA- granted to cashiers, disbursing officers, paymasters, and/or property/supply officers for any of the ff: Salaries and Wages, Commutable

allowances, Honoraria, and Petty operating expenses.

Special CA- granted on the explicit authority of the Head of the Agency only to designated DO for current operating expenditures, travel expenditures and the like.

Liability of Cash AO

Expenditures shall be a PERSONAL liability of the official or employee found to be directly responsible therefor.

AO shall be liable for all losses resulting from the unlawful deposit, use, or application therefor and for all losses attributable to NEGLIGENCE in the custodianship of the funds.

Liability of Cash AO

Prescription of application for relief shall not be relieved of liability or allowed credit for any such loss in settlement of his accounts. Notify the COA within 30 days or such longer

period as the COA may in particular case allow, and present his application for relief with the available pieces of evidence.

No AO shall be relieved from liability by reason of his having acted under the direction of a superior officer

Liability of Cash AO

Any public officer who unlawfully leaves or attempts to leave the Philippines without securing a certificate from COA showing that his accounts have been finally settled, shall be punished by arresto mayor or a fine ranging from 200 to 1,00 pesos or both.

Handling, Custody and Disposition of the Cashbook

A newly-appointed or designated AO shall start with a new cashbook.

The AO shall maintain separate cashbooks for salaries, wages, allowances, etc. and for petty operating expenses.

The AO shall record the transactions in the prescribed cashbook daily.

The AO shall reconcile the book balance with the cash on hand daily.

Handling, Custody and Disposition of the Cashbook

The cashbooks shall be kept at the Office of the AO and then placed inside the safe or cabinet when not in use.

When the AO ceases to be one, the cashbook shall be submitted to the Accountant or the Treasurer (for local government units) and shall form part of the accounting records.

Cashbook

Cash book is a book of original entry in which transactions relating only to cash receipts and payments are recorded.

For every entry made in the cash book there must be a proper voucher. Vouchers are documents containing

evidence of payment and receipts.

Petty Cash Voucher

Sec. 47. Petty Cash Voucher (PCV).   The Petty Cash Voucher (Appendix 44) shall be used for disbursements out of the Petty Cash Fund. (NGAS Volume II)

Sanctions against erring PO Malversation (Art. 217) Failure of accountable officer to render

accounts (Art. 218) Failure of a responsible public officer to

render accounts before leaving country (Art. 219)

Illegal use of public funds or property (Art. 220)

Failure to make delivery of public funds or property (Art. 221)