The town reported having less cash on hand than it actually had because a refund from an employee's cash advance was not recorded in the official books. This happened because the Treasurer and the Accounting Office did not compare their records with each other at the end of the year, which is supposed to be done at least quarterly.

Why It Matters

Recommended Actions

• Require the MT and MA to (a) regularly reconcile their respective records for the early detection and correction of errors
• And (b) based on the verified OR reflecting the correct amount of the refund, prepare the necessary adjustments in the book to arrive at the correct balance of the CLT account.

Original Audit Finding Excerpt

"The Cash in Local Treasury (CLT) account reported balance of ₱17,262,316.40 was understated by ₱24,627.98 compared to the validated balance per cashbook of the MT, owing to non-recording in the books of returned cash advance by an accountable officer (AO) as at year-end."

Source Document