Most barangays don't have 2011 budget

CEBU, Philippines - Less than 10 of the 80 barangays in Cebu City have submitted their annual budget for review and approval at the City Budget Office as of yesterday even though they were supposed to submit last December yet.

The absence of the annual budget prevents the barangays from undertaking releases.

Before the budget is submitted to the budget office, it must first pass through the City Accounting Office where the items are checked if it jives with their financial statement of the previous year.

The city accounting will then issue a certification that will allow the draft to be submitted to the budget office. After it is approved at the budget office, it will then be forwarded to the council’s committee on budget and finance headed by Councilor Jose Daluz.

The annual budget can finally be utilized once it gets the approval of the city council.

City Accountant Arlene Rentuza said that if the Commission on Audit will give fiscal autonomy back to the barangay, delays maybe shortened a little.

Fiscal autonomy was granted to the barangays sometime in 2007 but COA took it back because the commission had a hard time getting reports from the barangays.

Rentuza said that to persuade COA to grant them fiscal autonomy, the barangays also have to upgrade their standards in selecting barangay treasurers.

Rentuza said that only a few barangay treasurers in the city really qualify for the job. Most of them do not even know how to create financial statements which is part of the preparation of the budget.

Daluz said that the council agreed with Association of Barangay Councils President Michael Ralota to provide training first to the treasurers then implement minimum requirements later. Treasurers will be trained on basic bookkeeping and public finance. The budget office also is always open to the barangay treasurers for consultation.

If the barangays failed to pass a new annual budget, it will be forced to utilize a reenacted budget or the budget during the previous year.

But the use of reenacted budget, officials said, has a lot of disadvantages like no new projects can be undertaken, no new positions can be filled, no new equipments can be acquired, no new activities can be undertaken and no increase in honoraria and other benefits.

Only the appropriations for honoraria, salaries and wages or officials and employees, statutory and contractual obligations, essential operating expenses can be reenacted. (FREEMAN)