COA Uncovers P3.7 Million Dormant Cash Advance in Tagbilaran City Hall

A recent report by the Commission on Audit (COA) has flagged the local government of Tagbilaran City for failing to write off over ₱3.77 million in dormant cash advances and receivables—some dating back more than a decade—under the administration of Mayor Jane Yap, wife of City Chief Administrator Baba Yap.

The COA audit, dated February 23, 2023, cited a violation of International Public Sector Accounting Standards (IPSAS) 21, which mandates that entities assess and record impairment losses for unrecoverable assets.

According to gov’t auditors, the city government did not provide any allowance for impairment loss despite the prolonged dormancy of the accounts, thereby overstating its financial position in official statements.

“These dormant accounts remained inactive for more than ten years and their settlement could no longer be ascertained,” the report said, noting that the lack of appropriate adjustments “affected the fairness of the presentation of the account in the financial statements.”

The breakdown of the uncollected balances includes: ₱930,000 due from NGOs/POs under the General Fund; ₱1.36 million under General Fund – Other Receivables; and ₱1.49 million under the Special Education Fund.

All three categories were tagged as inactive for over ten years.

COA Circular No. 2016-005 defines dormant accounts as those with stagnant balances for at least ten years, with no foreseeable possibility of collection. It requires that such balances be written off and that impairment losses be recognized in financial reports.

“The non-provision of impairment loss resulted in the overstatement of the city’s surplus and receivables,” COA warned.

Neither Mayor Jane Yap nor Chief Administrator Baba Yap immediately responded to requests for comment.

The flagged amount raises concerns over the city’s internal control systems and long-term fiscal transparency under the current administration. Critics have called on the Department of the Interior and Local Government (DILG) and the Office of the Ombudsman to look into the matter, citing hidden corruption and negligence.