by Allan Yves Briones
The Commission on Audit (COA) reported over P5.77 million in outstanding debt from employees, private individuals and non-governmental organizations in Kalinga due to the provincial government’s poor cash practices.
Audit records showed that in 2018, Kalinga posted a collection rate of only 14.74% on funds owed to the local government.
State auditors pointed out flaws in the provincial government’s internal control including the lack of approval on sales on employee accounts
However, according to Kalinga Agricultural Office officials, the lack of documents showing authority to sell has been “a long-time practice.”
In addition, COA also highlighted the practice of logbook signing instead of valid documents and the lack of recording efforts on the part of the local accounting office.
“The inadequacy of controls in the management of receivables resulted in a low collection of revenues or receipts which could have been made available for the operations of the provincial government,” the report read.
Article 2 , Section 470 (d) (2) of the Local Government Code mandates that the provincial treasurer take charge and be responsible for the proper management of funds of the local government.
The state auditing agency recommended that Kalinga officials demand the collection of all “due and demandable receivable accounts,” and formulate guidelines to remedy similar scenarios in the future.
In the report, Kalinga management said they discontinued sales grants for agricultural products to prevent its steady accumulation.