COA: NBI underestimated P 537,106 worth of petty cash funds in 2017
The Audit Commission (COA) questioned the National Bureau of Investigation (NBI) for the double recording of its petty cash in its liquidation reports which led to an underestimation of its account by an amount of 537,106.35 P in 2017.
After a review of transactions and accounting records, COA auditors said that 13 custodians of the BNI petty cash fund recorded the liquidation of the petty cash account twice in their subsidiary books in 2016.
The COA said this had been recorded in the BNI’s books of account through “a debit to accumulated surplus (deficit) and credit to petty cash”, thus resulting in an underestimation of the account. small crate.
The COA further stated that custodians had not implemented the Advance Advance System, which stipulates that petty cash funds must be replenished as soon as disbursements reach at least 75%, required under section 35, Chapter 6, Volume 1 of the government accounting manual.
The same manual also states that the government agencies petty cash fund will only cover its recurring operating expenses for one month.
“A review of transactions made on the petty cash account revealed that the advance advance system had not been adopted because the practice of custodians is to request petty cash at the start of the year and submit its liquidation. at the end of the year or the following year ”, we can read in the audit report.
“Petty cash has never been replenished even when disbursements have reached at least 75 percent. Instead, the custodian will request another cash advance for the following year, after repaying the unused balance from the previous one. (petty cash) “, he added.
The COA said the presence of refunds and lack of replenishment meant the NBI had excessive petty cash.
The COA asked the BNI and its accountant to make the necessary adjustments to the petty cash balances and to require custodians to familiarize themselves with the rules for maintaining the fund.
At the exit conference, the BNI informed the COA that it will train its custodians on how to properly manage the petty cash fund.
Less than P4,000 monthly salary
Meanwhile, the COA also flagged the NBI for allowing 154 of its employees to receive take-home pay of less than P 4,000 per month.
As of December 31, 2017, the COA stated that 87 of these staff members were assigned to the NBI central office in Manila, while 67 were in field offices. That has already been cut in half from the 309 staff found by COA in January to receive that salary.
The COA said the take-home pay of these employees violated section 47 of the General Appropriations Act 2017, which limits the minimum amount to P 4,000 after mandatory deductions.
These deductions include government insurance, savings and non-stock loans, and contingency funds.
“We recommended that management adhere to Article 47 of GAA 2017 and direct the personnel division / payroll section to restore the net take-home pay of each permanent / regular employee to P4,000.00, taking into account in the order of preference in the deductions of obligations, ”said the COA.
The NBI told the COA at the exit conference that the minimum net salary for 2018 would increase to P 5,000 per month due to the effects of the TRAIN law. – MDM, GMA News