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DepEd‘s unliquidated CA down to 12%

posted May 18, 2011, 5:04 AM by Michelle Garcia

The Department of Education has shown continuous improvements in liquidating cash advances as part of its thrust for an efficient financial housekeeping and transparent governance.

DepEd’s financial report showed that of the P1.6 billion unliquidated advances noted by the Office of the Ombudsman last year, it has already liquidated some P1.4 billion or 88 percent liquidation efficiency as of March 31, 2011.

 “When the Ombudsman first called DepEd’s attention in July 2010 on unliquidated cash advances we acted with dispatch to comply with the directive because good financial housekeeping is part of good governance,” said Education Secretary Armin Luistro.

By December 2010, DepEd’s liquidation compliance was recorded at 81 percent having liquidated some P1.3 billion by year-end.

DepEd’s liquidation of cash advances takes some time because it only has a handful of accountants who must diligently review each liquidation report.

“With the size and coverage of the department, spending for our programmed projects and activities will consequently be higher and takes a little longer to liquidate than those of other agencies,” Luistro explained.

Cash advances made by disbursing officers are used by DepEd for special payroll services specifically for teachers and personnel in areas not served by electronic banking. Advances are also drawn for expenses during trainings, seminars or workshops.  These expenses include purchase of supplies or transportation expenses.

“We want to assure the public that the department is a responsible steward of government money and that the people’s taxes are spent very prudently,” said Luistro.

A recent survey by Pulse Asia revealed that DepEd is perceived as one of the least corrupt government agencies, maintaining its image for two years in a row, as reforms for good governance continue to be implemented.

“DepEd is trying its mighty best to walk the talk in transparency and financial management efficiency because it wants to lead by example to the public and to over 20 million elementary and high school students under its care,” Luistro added.