MANILA - The Commission on Audit has issued a circular to mayors and barangay officials for a control mechanism to enforce the submission of financial transactions of barangays to city or municipal officials for auditing purposes.
In the circular dated January 30, 2019, the commission stopped the practice of withholding payments of checks through a COA Auditor’s Advice or CAA when barangays fail to submit original copies of disbursement vouchers.
The COA noted that the system causes the delay of delivery of services of barangays as failure to submit vouchers result into a CAA sent to the authorized government depository banks for the withholding of further payments of checks issued by the barangay.
In the new system, however, controls are still in place as financial transaction documents should be submitted by barangay treasurers to the city or municipal accountant within 10 days after the end of the month.
The city or municipal accountant shall then submit transmittal letters to the supervising auditor or audit team leader and if the barangay treasurer fails to submit documents, the barangay chairman will be issued a demand letter to require the barangay treasurer to submit the transactions.
“Fiscal responsibility shall rest with the punong barangay. The PB shall also be responsible for the proper discharge of duties and responsibilities of the barangay officials,” the COA said in the resolution signed by Chairperson Michael Aguinaldo and Commissioners Jose Fabia and Roland Pondoc.
The circular noted that failure of the officials concerned to discharge their duties shall be a basis for administrative or criminal sanctions under the Government Auditing Code, Civil Service Rules, the Revised Penal Code and other pertinent laws.