The Commission on Audit (COA) has reminded the Film Development Council of the Philippines (FDCP) that cash—not personal credit cards—is the only acceptable mode of payment for official government transactions.
In its 2024 audit report, COA flagged the unauthorized use of employees’ personal credit cards to pay for FDCP meetings, events, and overtime meals totaling more than P46,000.
Auditors noted that the practice allowed some personnel to earn rewards points, which they said “defeated the purpose” of maintaining petty cash funds in the agency.
COA said the transactions violated COA Circular No. 2021-014, which prohibits the use of credit cards for government payments unless safeguards against misuse are in place.
The rules further state that only authorized cash or treasury personnel may be designated as credit card users, subject to agency head approval.
According to COA, the personal credit card payments were made between May and July 2024, mostly for meals.
The largest payment was P8,110 on May 10, while the smallest was a P300 purchase on July 15.
Auditors stressed that petty cash funds should be “readily accessible” and supported by preventive controls to ensure immediate availability when needed.
COA directed the FDCP to stop the use of personal credit cards for official expenses and comply with the existing guidelines.
However, the FDCP disagreed, saying food delivery platforms do not accept cash for orders above P1,000, even though at least two flagged transactions were below that amount.
The film agency appealed for the continued use of credit cards, citing convenience and the lack of petty cash custodians.