P107 million in transactions not in city's records

CEBU, Philippines – The Cebu City government spent P107.7 million for various projects, including the purchase of lots expropriated for the use of the urban poor families, but failed to record these in the books of accounts.

Commission on Audit-7 regional director Delfin Aguilar said any expense paid by the government should be recorded in the books of accounts, particularly if it involves huge amounts of public funds.

These expenses include the P21,291,369 payment for the purchase of a 4,654-meter lot owned by Rev. Fr. Vicente Rallos that was used by the city as a road in 2001.

The city also paid P28,500,000 to the families of Ciriaco and Arminda Ortiga for their 2,856-meter lot which is presently occupied by urban poor families, although this was planned to be converted into a public market.

Aguilar told Cebu City Mayor Michael Rama that Section 350 of the Local Government Code provides that all lawful expenditures and obligation incurred during a fiscal year shall be taken up in the accounts of that year.

Section 43 of the New Government Accounting System also states that the checks released to claimants shall be reported in the Report of Checks Issued which shall be prepared by the treasurer for each fund.

Then the procedure requires the treasurer to forward the RCI to the accountant for the preparation of Journal of Entry Voucher based on the individual checks issued.

The state auditors learned from the bank records that checks amounting to P107,786,539 had been encashed already by the bank, but these remain unrecorded in the city's books of accounts.

The personnel of the city's accounting department under Arlene Rentuza washed their hands and blamed the City Treasurer's Office headed by city treasurer Ofelia Oliva as the responsible for it.

The accountant explained that they cannot record such transactions in the book of accounts due to the non-submission of pertinent vouchers and other supporting documents by the City Treasurer's Office.

The accounting department showed to the state auditors its letters requesting the city treasurer's office to furnish them the needed documents as the basis for recording the transactions in books.

Aside from the amount for the purchase of lots owned by the Rallos and Ortiga families, the 21 unrecorded issued checks amounting to P67,724,249 were payments of deliveries for gasoline, diesel and other kinds of fuel.

The state auditors suggested that the city treasurer's office should immediately submit to the accounting department the paid vouchers and corresponding documents covering any transactions so that it can be recorded right away in the books of accounts. (FREEMAN)