Findings No.6 COA Annual Audit Report 2005

July 28, 2008

6. Due to poor supervision and monitoring, regular revenue collectors failed to remit their collections to the Liquidating Officers on time, in violation of Section 31 of COA Circular No. 92-382, thus exposing funds to misuse or misappropriation and depriving the city government of the immediate use of the income earned during the period.

Section 26 of COA Circular No. 92-382 provides that at the close of the business day, collectors shall turn over all their collections intact to the treasurer/cashiers. In case of collectors assigned to the field, where travel time from their place of assignment to the treasurer’s office is more than one day, turn over of collections shall be made at least once a week, or as soon as the collections reach P5,000.00

Section 31 of the same Circular provides that collectors shall turn-over their collections to their designated liquidating officer following the procedures prescribed in Section 26.

Evaluation of records revealed that the City treasury has made an internal policy that collections from Monday to Friday should be remitted every Friday to the Liquidating Officer while collections from Friday to Sunday shall be remitted every Monday or as soon as the collections reach P500.00. Despite the policy, records showed that some collectors failed to remit within the time provided by said circular. The delay of the remittances ranges from 4 days to 21 days. (Annex 7)

Said deficiency was attributed to poor supervision and inadequate monitoring of the Assistant City Treasurer. The Assistant City Treasurer failed to closely follow up the remittance of collection, thus gave an opportunity for the collectors to misuse/ misappropriate the funds, as evidenced by the late remittance.

The Assistant City Treasurer concurred with the finding and promised to closely monitor the remittances, especially those coming from erring collectors.

Recommendation

Advise the Assistant City Treasurer to closely supervise and monitor the remittances of collections to ensure their timely remittance, in order to safeguard the collections, avoid misappropriation/misuse or loss of cash. Instruct the Assistant City Treasurer to strengthen the implementation of the internal policy of the agency and to relieve revenue collectors who always fail to remit on time.

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Written by admin · Filed Under Commission on Audit, Tangub City