Cebu City Councilor Jose Lorenzo Abellanosa is pushing for the recovery of public funds tied up in unliquidated cash advances at City Hall, saying the move could improve the city’s cash flow and strengthen financial accountability.
Abellanosa’s proposal was approved through a resolution by the Cebu City Council earlier this week, directing the City Accountant’s Office to submit within 15 days a detailed report on all cash advances issued to city employees.
The required report will cover the total amount of cash advances per employee or department, outstanding balances, liquidation status, and a list of personnel with overdue settlements, along with recommended actions.
The councilor said the measure is aimed at addressing long-standing concerns over unliquidated advances that remain recorded as receivables in the city’s financial books.
The resolution noted that recovering these amounts could help improve Cebu City’s cash flow and allow the reallocation of funds for priority programs, including infrastructure and social services.
It also cited concerns raised in audit reviews regarding the impact of unliquidated cash advances on financial statements, including overstated assets and understated expenses, as well as potential risks flagged by the Commission on Audit (COA).
The measure anchored its intent on constitutional and legal provisions emphasizing accountability in public service, including the principle that public office is a public trust under the 1987 Constitution and provisions of the Local Government Code on transparency and fiscal responsibility.
The City Council also cited its authority under the Local Government Code to ensure efficient use of local government resources for development and public welfare.
Copies of the resolution were furnished to the Office of the Mayor, the City Accountant, and other concerned offices for appropriate action.
The resolution did not specify the total amount of unliquidated cash advances, pending the submission of the required accounting report. (LLP)
Photo from Sangguniang Panglungsod Secretariat- Cebu City
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