CAGAYAN de Oro City Water District (COWD) is facing issues due to the late submission of 390 disbursement vouchers based on the Audit Observation Memorandum (AOM) from the Commission on Audit (COA).

These vouchers are for checks totaling P253,960,124.68 as of November 30, 2024.

According to COA, addressed to Interim General Manager Fermin Jarales, the audit report highlights these delays as a serious concern.

The report indicates that the late submissions violate important financial rules, specifically Section 107 of Presidential Decree No. 1445 and Section 7.1.1 of COA Circular No. 2009-006.

The COA also stated that timely reporting of financial documents is essential for transparency and accountability.

As of the end of November 2024, 188 vouchers from the third quarter of 2024 and 202 vouchers from November 2024 have not been submitted.

Despite a formal request from the Commission on Audit (COA) for these documents, no action has been taken.

The delay impacts not only the missing paperwork but also complicates the audit process.

Without these vouchers, verifying the accuracy of expenditures becomes difficult, the COA said.

“This situation is exacerbated by staff shortages, with only one person responsible for digitizing the vouchers. Reassignments in the Cash Division have further hindered timely processing,” COA’s memo reads in part.

In response to the audit report, Interim General Manager Fermin Jarales acknowledged the delays.

AUTHORIZED SIGNATORY. IGM Fermin Jarales displays documents today, October 30, confirming his authorization from the Bureau of Treasury to manage all bank transactions for the Cagayan de Oro Water District. He also clarified plans to submit Local Water Utilities Administration Board Resolution No. 34 to the Commission on Audit to address concerns of procedural irregularity. File photo by Shiela Mae Butlig

“The disbursement vouchers in question are currently undergoing scrutiny and review by the Office of the Interim Manager,” he said regarding the first recommendation from the COA, adding that these vouchers were initially submitted during the transition period.

“Rest assured that the 390 disbursement vouchers, along with the corresponding Journal Entry Voucher, will be duly prepared and submitted within the timeframe prescribed by the COA upon completion of the review,” Jarales explained.

On the second and third recommendations, Jarales noted that his office duly takes note of these recommendations to ensure the timely submission of disbursement vouchers to the COA.

Specifically, Jarales is already assigning qualified additional personnel to reinforce the Finance Department and ensure efficient and effective compliance.

The audit report recommends that management, led by Jarales, immediately submit the 390 missing vouchers and improve monitoring to ensure timely submissions in the future.

Earlier, former COWD Board Chairman Dr. Gerry Caño maintained that addressing these issues is crucial for maintaining financial integrity and ensuring public trust in the water district’s operations.