The Commission on Audit could not fully establish the validity of ₱30.714 million in typhoon Tino cash aid distributed by Liloan because payouts lacked supporting validation documents.
Municipal officials attributed missing paperwork to disaster response urgency, pledged to enforce stricter validation protocols, and stated the required documents were prepared for submission to state auditors.
COA further flagged Liloan for allowing a disbursing officer to handle cash advances exceeding her ₱1.5 million limit and entrusting payout duties to unauthorized personnel.
THE Commission on Audit (COA) said it could not fully establish whether P30.714 million in cash aid distributed by the Liloan Municipal Government to households affected by typhoon Tino went to eligible recipients because the payouts lacked supporting validation documents.
This finding appears in COA’s 2025 audit report on Liloan, a first-class municipality in the northern side of Metro Cebu. The aid covered shelter assistance for households whose homes were damaged by Tino (international name: Kalmaegi), which struck on Nov. 4, 2025, causing floods and widespread damage.
Households with totally damaged homes received P5,000 each, while those with partially damaged homes received P3,000.
State auditors said the town’s disbursing officer received P37.251 million in cash advances through six checks issued from Dec. 10 to 19, 2025. Of this amount, P30.714 million had been distributed to beneficiaries as of Dec. 31.
After examining the disbursement vouchers, supporting papers and liquidation reports, auditors found no validation documents showing that the people listed in the payroll were eligible for assistance.
“With the absence of these relevant documents, the validity of the transactions cannot be fully established,” COA said.
The audit agency cited Presidential Decree 1445, or the Government Auditing Code of the Philippines, which requires claims against government funds to be supported by complete documentation.
The Municipal Social Welfare and Development Office (MSWDO) prepared the list of recipients and conducted the payouts. It told auditors that barangays validated the beneficiaries and submitted the final lists, while MSWDO personnel validated some recipients. However, the supporting validation documents were not attached to the disbursement vouchers.
The MSWDO also explained why some of the assistance remained undistributed at year-end. Several affected households had temporarily relocated and could not receive the money on the scheduled payout dates. Based on COA’s figures, P6.537 million in cash advances remained undistributed as of Dec. 31.
According to the report, the incomplete documentation was attributed to the “exigent circumstances” following the typhoon, when immediate assistance to affected families took priority.
The report further noted that operational constraints and the relocation of some beneficiaries prevented the consolidation of the paperwork. The lapses resulted from the urgency of the disaster response, “not an intent to bypass procedures.”
Stricter validation
The Municipal Government pledged to adopt stricter validation and documentation protocols. During the exit conference with auditors, officials said the validation documents had already been filed and were ready for submission.
State auditors acknowledged the urgency of the response when the cash advances were issued. However, they said complete documentation must still be maintained and submitted “to ensure transparency, accountability, and proper validation of the disbursements.”
In another finding, COA said the town’s sole disbursing officer received cash advances that exceeded her approved accountability limit of P1.5 million. She was covered by a fidelity bond of P750,000. A fidelity bond is a form of insurance purchased by the local government to protect against financial and property losses caused by employee fraud, theft, embezzlement, forgery, or dishonest misconduct.
The advances covered payrolls and financial assistance, including two checks for the typhoon aid program. The disbursing officer told auditors that she entrusted the payout of her cash advances to other personnel, a practice COA said is prohibited under COA Circular 97-002.
State auditors also noted that the Municipality’s liquidating officer, who receives and deposits collections from the town’s collecting officers, regularly handled amounts exceeding her approved accountability limit of P1 million. At a cash count on Feb. 9, 2026, collections remitted to her totaled P1,491,329.32. She told auditors that daily collections consistently exceeded her limit.
According to the report, the Municipal Treasurer’s Office remits collections to her only once a day, near the end of working hours, because of limitations in the computer system. The money remains in her custody and is deposited the next banking day.
The Municipality, in its reply, said it would increase the fidelity bond coverage of its accountable officers. It also reported putting interim safeguards in place, including stricter monitoring of cash advances. COA suggested that the town designate additional special disbursing officers to reduce the volume of cash advances handled by one person.
State auditors recommended that the MSWDO submit complete validation documents for all listed recipients, including inspection reports, beneficiary assessment forms and barangay certifications. The office was advised to compile the documents for further audit procedures at a later date.
COA did not issue a notice of suspension or disallowance on the aid. The audit report showed that Liloan had no suspensions, disallowances or charges as of Dec. 31, 2025. However, the Municipal Government had an outstanding disallowance before the effectivity of the rules and regulations on settlement of accounts under COA Circular 2009-006 dated Sept. 15, 2009, totaling P546,821.55. / KAL