Accountability and Custody of Funds, Records and Properties
Who is accountable
An accountable officer has custody of or control over government funds, accountable forms or property. The local treasurer is accountable for collections and cash; collecting officers for their collections; property custodians for supplies and equipment. Accountability is personal and survives transfer until a proper turnover.
Custody rules
- Cash belongs in the vault or bank, not in an official's wallet or house.
- Accountable forms are serially recorded and kept under lock; spoilage is reported and witnessed.
- Fidelity bonds must cover accountable officers; the bond amount should match maximum accountability.
- Turnover requires a cash count, inventory of accountable forms and property, and a signed report to the LGU and COA.
Worked example
A municipal treasurer retires. The incoming treasurer, the mayor's representative and the COA auditor count cash of P600,000 against a book balance of P650,000. The P50,000 shortage is noted; the outgoing officer does not get clearance until it is explained or restituted. Accountable forms are inventoried by series. The turnover report becomes the baseline for the new officer.
Traps
- Signing a turnover without counting cash.
- Treating a certificate of clearance as automatic.
- Leaving official receipts unsecured.
- Ignoring property accountability while focusing only on cash.