Republic ofthe Philippines COMMISSION ON AUDIT Regional Office No. V Rais, Lesarpi City Mote Now C15321341/0 OFFICE OF THE REGIONAL DIRECTOR October 29, 2021 MEMORANDUM TO: Assistant Regional Director, Supervising Auditors, Regional Supervising Auditors, Audit Team Leaders, Audit Team Members, and All Other Concerned Personnel SUBJECT: —Unliquidated Cash Advances, Fund Transfer, and Other Receivables Based on the review of the Annual Audit Reports, it is noted that there were significant amount of cash advances which remained unliquidated or outstanding for a long time. Further, we observed that compliance on the requirements of COA ‘was not faithfully performed, such as: Incomplete data and information provided on Status Report submitted every end of semester: 2. Absence of proof of action by the accountant in demanding liquidation or settlement of unliquidated cash advances, fund transfer, and other receivables. 3. Non-issuance of final demand letters to the concemed accountable officers by the Audit Team. 4, Non-preparation of sworn Narrative Reports for cash advances which remained unseitled and thereby warrant the filing of administrative and/or criminal charges complaint. Relative thereto, there is a need to religiously monitor these unliquidated cash advances, fund transfers and other receivables to facilitate appropriate action necessary on the matter. Thus, attention is invited to Items V.2 and V.3 of COA ‘Memorandum Nos. 2017-10' dated May 15, 2017: “Restatement with Amendment of ALL Issuanees Governing Submission of Status Reports of Uniquidated CCash Advances, Fund Transfers and oher Receivables 1tem V.2 For long outstanding eash advanee other receivables not yet issued by the ATL with final demand letters, the ATL shall immediately issue the same upon receipt of the Schedules from the Auditees and proof of action taken by the accountant to demand Tiquidation/settlement thereof in preparation for the filing of appropriate charges by the concerned CD/RD before the OMB in case the accountable officers/tecipient/NGO failed to comply therewith. Item V3 Ifthe filing of administrative and/or criminal charges is warranted, the SA and ATL shall attach as sworn Narrative Report for each cash advance/fund transfer, supported by the following documents. (as enumerated in COA Memorandum No, 2017-010) ‘As guidance in the conduct of audit of cash advances, please refer to COA Memorandum Nos. 2017-010 dated May 15, 2017 and 2018-008" dated June 26, 2018, COA Circular Nos. 97-002° dated February 10, 1997 and 2016-005" dated December 19, 2015. For information and compliance, please. S. ESTOLATAN jonal Director T amendment of lem V.4 of COA Memorandum No. 2017-010 dated May 15, 2017 entitled “Restatement with Amendment of ALL Issuances Governing Submission of Status Reports of Unliquidated Cash ‘Advances, Fund Transfers and other Receivables.” » Restatement with Amendments ofthe Rules and Regulations on the Granting, Utilization, and Liquidation ‘of Cash Advances Provided for Under COA Circular No. 90-331 dated May 3, 1990. "Guidelines and Procedures on the Weite-off of Dormant Receivable Accounts, Unlquidsted Cash ‘Advances and Fund Transfers of National Government Agencies (NGA), Loeal Government Units (LGU), and Government-Ovned and Controlled Corporations (GOCCS). 2