Orientation on Cash

Management and Control

System

Penal Provision of PD 1445

(Government Auditing Code)

Section
128.Penal
provision.Any
violation of the provisions of Sections xx
89, xx of this Code or any regulation
issued by the Commission implementing
these sections, shall be punished by a
fine not exceeding one thousand pesos
or by imprisonment not exceeding six
(6) months, or both such fine and
imprisonment in the discretion of the
court.

Section 89.Limitations on
cash advance.
A

cash advance shall be reported on

and LIQUIDATED as soon as the
purpose for which it was given has
been served.
The
mere failure to TIMELY
liquidate the cash advance is the
gravamen of the offense (People v.
Sandiganbayan, G.R. No. 174504,
March 21, 2011)

What is an accountable
officer?
The

person who be reason of his

office or duty ought to be or deemed
to be in possession or custody of
government funds or property.
A holder of PERMANENT position and
shall be properly BONDED in
accordance with law.

Types of Cash Advance

Regular

CA- granted to cashiers,

disbursing
officers,
paymasters,
and/or property/supply officers for
any of the ff:
Salaries

and
Wages,
allowances,
Honoraria,
operating expenses.

Special

Commutable
and
Petty

CA- granted on the explicit

authority of the Head of the Agency
only to designated DO for current

Liability of Cash AO
Expenditures

shall be a PERSONAL
liability of the official or employee
found to be directly responsible
therefor.
AO shall be liable for all losses
resulting from the unlawful deposit,
use, or application therefor and for
all losses attributable to
NEGLIGENCE in the custodianship
of the funds.

Liability of Cash AO

Prescription of application for relief shall

not be relieved of liability or allowed credit
for any such loss in settlement of his
accounts.
Notify the COA within 30 days or such longer

period as the COA may in particular case

allow, and present his application for relief with
the available pieces of evidence.

No AO shall be relieved from liability by

reason of his having acted under the
direction of a superior officer

Liability of Cash AO
Any

public officer who unlawfully

leaves or attempts to leave the
Philippines
without
securing
a
certificate from COA showing that his
accounts have been finally settled,
shall be punished by arresto mayor
or a fine ranging from 200 to 1,00
pesos or both.

Handling, Custody and

Disposition of the Cashbook
A

newly-appointed or designated AO
shall start with a new cashbook.
The AO shall maintain separate
cashbooks for salaries, wages,
allowances, etc. and for petty
operating expenses.
The AO shall record the transactions
in the prescribed cashbook daily.
The AO shall reconcile the book
balance with the cash on hand daily.

Handling, Custody and

Disposition of the Cashbook
The

cashbooks shall be kept at the

Office of the AO and then placed
inside the safe or cabinet when not
in use.
When the AO ceases to be one, the
cashbook shall be submitted to the
Accountant or the Treasurer (for local
government units) and shall form
part of the accounting records.

Cashbook
Cash

book is a book of original

entry in which transactions relating
only to cash receipts and payments
are recorded.
For every entry made in the cash
book there must be a proper
voucher.
Vouchers are documents containing

evidence of payment and receipts.

Petty Cash Voucher

Sec.

47. Petty Cash Voucher

(PCV). The Petty Cash Voucher
(Appendix 44) shall be used for
disbursements out of the Petty Cash
Fund. (NGAS Volume II)

Sanctions against erring

PO
Malversation

(Art. 217)
Failure of accountable officer to render
accounts (Art. 218)
Failure of a responsible public officer to
render accounts before leaving country
(Art. 219)
Illegal use of public funds or property
(Art. 220)
Failure to make delivery of public funds
or property (Art. 221)