Liquidation of Cash Advances and the Penalty to be Imposed for Failure of An Accountable Officer to Liquidate within the Prescribed Period

May 31, 2012 BIR MEMORANDUM FOR : All Revenue Officials and Employees Concerned SUBJECT : Liquidation of Cash Advances and the Penalty to be Imposed for Failure of An Accountable Officer to Liquidate within the Prescribed Period For the information and guidance of all concerned, attached is a copy of CSC Resolution No. 1200103 dated January 12, 2012, re: "Amendment to Rule V of CSC Resolution No. 04-0676 dated June 17, 2004 (Policy Guidelines to Govern the Liquidation of Cash Advances and the Penalty to be Imposed for Failure of an Accountable Officer to Liquidate within the Prescribed Period)". For strict compliance. (SGD.) CELIA C. KING Deputy Commissioner Resource Management Group ATTACHMENT January 12, 2012 CSC RESOLUTION NO. 1200103 AMENDMENT TO RULE V OF CSC RESOLUTION NO. 04-0676 DATED JUNE 17, 2004 (POLICY GUIDELINES TO GOVERN THE LIQUIDATION OF CASH ADVANCES AND THE PENALTY TO BE IMPOSED FOR FAILURE OF AN ACCOUNTABLE OFFICER TO LIQUIDATE WITHIN THE PRESCRIBED PERIOD) WHEREAS, Section 27, Article II of the 1987 Constitution provides that it shall be the policy of the State to maintain honesty and integrity in the public service and take positive and effective measures against graft and corruption; IaDcTC WHEREAS, Section 12 (2), Chapter 3, Title I, Subtitle A, Book V of the Administrative Code of 1987 (Executive Order No. 292) empowers the Civil Service Commission (CSC) to prescribe, amend and enforce rules and regulations to carry into effect the provisions of the Civil Service Law and other pertinent rules; WHEREAS, the CSC, together with the Commission on Audit and Office of the Ombudsman, forged a joint anti-corruption plan called the Solana Covenant in 2004 to help and support each other in fighting corruption. As part of their collective action, the three (3) constitutional bodies identified the need to strictly implement the rules on liquidation of cash advances as this has become a source of graft and corruption in the bureaucracy. Each constitutional body issued parallel circulars to monitor and impose necessary sanctions regarding violations of the guidelines on liquidation of cash advances; WHEREAS, the CSC issued CSC Resolution No. 04-0676 dated June 17, 2004 entitled "Policy Guidelines to Govern the Liquidation of Cash Advances and the Penalty to be Imposed for Failure of an Accountable Officer to Liquidate Within the Prescribed Period", providing for the rules governing the liquidation of cash advances in aggregate amounts of Fifty Thousand Pesos (Php50,000.00) and above per accountable officer and the penalty to be imposed for failure to liquidate within the prescribed period; WHEREAS, there is a need to amend and clarify certain provisions of CSC Resolution No. 04-0676, particularly Rule V thereof, to conform with Supreme Court jurisprudence, as well as set parameters in determining administrative liability of concerned accountable officer. NOW, THEREFORE, the Commission hereby RESOLVES to amend Rule V of CSC Resolution No. 04-0676 dated June 17, 2004, as follows: "RULE V. ADMINISTRATIVE LIABILITY. "Section 8. The failure of an Accountable Officer to render an account in full within the periods prescribed and after formal demand shall constitute the administrative offense of Gross Neglect of Duty punishable by dismissal from the service for the first offense. Full liquidation/settlement/payment of the subject cash advance outside the given periods shall constitute the offense of Simple Neglect of Duty punishable by suspension from the service for one (1) month and one (1) day to six (6) months for the first offense, and dismissal from the service for the second offense." ICHcaD All rules, regulations and issuances which are inconsistent herewith are hereby repealed, amended or modified accordingly. This Resolution shall take effect fifteen (15) days after its publication in a newspaper of general circulation. Quezon City. (SGD.) FRANCISCO T. DUQUE III Chairman (SGD.) MARY ANN Z. FERNANDEZ-MENDOZA Commissioner On leave RASOL L. MITMUG Commissioner Attested by: (SGD.) DOLORES B. BONIFACIO Director IV Commission Secretariat and Liaison Office