CNU told to collect canteen rent

CEBU, Philippines - The Commission on Audit has advised the administration of the Cebu Normal University to strictly monitor the collections of canteen rent, otherwise the university will be deprived of supposed income.

The state auditors discovered that the CNU officials allowed the school’s cooperative to operate the canteen starting June 2008 and to pay a rental fee of P25,000 a month. In turn, the cooperative also leased the canteen space to a private individual for P40,000 a month.

At first, the cooperative’s president asked the university president to allow them use the canteen space free of charge as a privilege under the Republic Act 6938 or the Cooperative Code of the Philippines, but the request was denied.

Former university president Ester Velasquez explained that the cooperative has already availed of the privileges under Republic Act 6938 as they were provided with a room for their office and a stockroom for their goods.

The canteen operation of the university was stopped by the cooperative last November 2006 for the reasons that they were losing and they are not in favor of paying fixed monthly rentals. They only resumed on June 2008.

It was found out that while the private lessor of the canteen started the operation in June 2008, the university’s cooperative failed to pay the rent depriving the CNU of the supposed P125,000 income until December 2008.

The state auditors also discovered that the operation of the canteen is without legal basis due to the absence of a contract or memorandum of agreement between the cooperative and the Cebu Normal University.

Incumbent university president Marlon Lopez, however, had already instructed the school’s cooperative to settle their financial obligations as well as the drafting of the MOA.

In a related development, COA also reminded the CNU officials to strictly comply with the state audit rules by submitting to the auditor’s office all disbursement vouchers and other supporting documents not later than the fifth day of the ensuing month.

It was found out that there were occasions when CNU officials submitted the required documents to the auditor’s office from 91 to 100 days late, in violation of the provisions as provided for under Republic Act 1445. — Rene U. Borromeo/BRP(FREEMAN NEWS)