Belated christmas gifts Brgy officials, employees to receive rice soon

CEBU, Philippines - Each of the 6,575 barangay officials and employees in Cebu City may finally receive their sacks of rice as belated Christmas gifts from the city once the city council will authorize the charging of the total cost amounting to P8.2 million against the previous year’s account.

Councilor Margarita “Margot” Osmeña, head of the City Council’s committee on budget and finance, said she has no objection that the amount will be charged against the prior year’s account after City Accountant Diwa Cuevas said it is not illegal.

The distribution of one sack of rice to each of the barangay officials and employees in the city was supposedly to be done last December but the city ran out of time that is why the distribution of rice supplies was suspended.

Osmeña said she will render her committee report before the City Council, on Wednesday, supporting the request to charge the P8,218,750 against Account 684 or the prior year’s adjustment based on the accountant’s advise.

Records showed that the purchase request for the rice supplies has been approved last year, hence, this was obligated through the Obligation Request in the year 2012.

Cuevas explained that if this will not be done, there is an overstatement of the 2012 Net Income for there was no recording of the expense relating to this contract.

“To correct the overstatement of the net income for the year 2012 due to non-recognition of expense, the charging to prior year adjustment is inevitable,” said Cuevas.

The documents showed that the city will be spending over P8.2 million for the purchase of 6,575 sacks of rice at P1,250 per bag that will be distributed to all barangay officials and employees. (FREEMAN)