COA: Senate has to fully liquidate P636M

MANILA, Philippines – In 2012, senators spent – or claimed they spent – P636 million in performance of their “legislative functions.” They had nothing but mostly certifications to prove so.

The Commission on Audit (COA), however, is putting an end to this practice, and is asking the Senate to submit full liquidation of the amount.

A total of P635,783,439.66 was divided among the offices of 23 senators in 2012 in the form of cash advances. More than half of that amount was spent on operations, while the rest was used for travels and hearings, among other things. 

“However, our examination revealed that these were not supported by necessary documents such as official receipts, plane tickets, itinerary of travel, office orders and certificates of travel completed,” auditors noted.

Except for senators Juan Ponce Enrile, Vicente Sotto III, and Panfilo Lacson (whose term ended in 2013), all other senators submitted only a “certification stating that his/her office incurred such expenses in relation to his/her official legislative functions,” and not acceptable supporting documents. 

Documents reviewed by auditors showed that of the P636 million in question, only P372.374 million was allocated for regular maintenance and other operating expenses (MOOE) in 2012. The remaining P263.408 – labeled as “excess budgetary allocation” – was realigned and spent on “other maintenance and operating expenses,” such as travels, committee hearings, subscription expenses, and miscellaneous expenses.

The Senate invoked special provisions of the 2012 budget law that authorized the Senate President and the Speaker of the House of Representatives to augment general items with savings from other items within their chambers.

In August 2011, the Senate and the House adopted a concurrent resolution to note that COA has “consistently allowed the current system of liquidation by way of certification.” The audit agency, however, said it had informed the Legislative Accounting Services even earlier, in January 2011, that certifications do not meet liquidation requirements.

A review of the practice ordered by COA Chair Ma. Gracia Pulido Tan resulted in a January 2013 memorandum instructing auditors that, starting 2012, certifications would no longer be accepted in liquidation. They have to reflect expenses breakdown and be accompanied by receipts.

The Senate, however, said the new COA rule “would be impossible to comply” with. In a comment it submitted to COA, the Senate said their system of submitting certifications “will remain valid and enforceable until a resolution is passed for its repeal or until the Supreme Court nullifies it.”

COA cited Article IX-D of the 1987 Constitution, which states that the power to formulate rules on liquidation of cash advances rests on COA alone. 

Auditors also questioned the P580.45 million that the Senate charged under “other operating expenses” without disbursement documents. “The funds were released through cash advances and liquidations thereof were made through Liquidation Reports/Reports of Disbursements supported only by mere certification from the respective Senators,” COA said.

These “other” expenses comprised almost 90 percent of the total allocations for the senators’ MOOE for 2012. “(This) appears quite unusual considering that this sundry account is customarily used for small amounts which could not classified to any specific MOOE accounts,” COA said. – Rappler.com