Dagupan suffered deficit in 2012
COA RULES BEING VIOLATED
SURPLUS no. Deficit yes!
Two minority city councilors refuted the claim of the Lim administration that the city has a surplus at the end of 2012 and maintained their finding that the Dagupan City government did not only suffer a shortfall in revenue collection last year by P41 million but suffered a still undetermined deficit.
Citing that electric bills of the city from August to December 2012 that were paid out of the existing 2013 budget, Councilors Jeslito Seen and Maybelyn Fernandez said that since the city hall could not pay its bills in 2012, it can only mean the city registered a deficit and not a surplus contrary to the city hall’s claim.
The two councilors are demanding for a special audit of the finances of the city by the Commission on Audit (COA) following the admission by the Treasurer’s Office that some obligations of the city for 2012 were charged to the 2013 budget.
Seen said it appears that the city is now in desperate need of funds noting the move of the city hall asking for the reversion of the first quarter savings on personnel services even if the first quarter is not yet over.
Calling on the present city administration to open the books of accounts of the city and be more transparent, Seen said he wants to know from the city’s finance management committee how many more of past year’s obligations were paid out of the 2013 budget.
For her part, Fernandez reiterated COA Circular No. 2001-005 dated Oct. 30, 2010 that states that expenditures and obligations incurred during the fiscal year can only be taken from the account of that year.
“Ang sabi ng COA ruling na malinaw ay kung ang budget ay nakalaan para sa 2012, ito ay puede lang gastusin sa 2012. Hindi ho maaring ang gagastus sa obligasyon ng 2012 ay kukunin sa budget ng 2013,” Fernandez said in a press conference last March 23.
A representative of the budget office, Mae Estrada, and City Treasurer Romelita Alcantara acknowledged that the city had been violating this COA ruling as a matter of practice for the past two years.
“Tanong ko: Tama po ba na ginagawa natin ito gayong alam natin na ito ay violation sa COA ruling? Kahit ito practice na matagal na, two years ago, tama ba na gagawin pa rin nila ito now that we called their attention?” Fernandez said.
Alcantara earlier reported that the city was only able to collect total of P541 million out of the estimated income of P581 million last year.
SUPPLEMENTAL BUDGET
Councilor Fernandez was on official leave when the minority in the SP led by seven councilors called for a special session for the purpose of approving a proposed supplemental budget, some P7 million of which will come from personnel service savings for the first quarter of the year and P39.9 million from the proceeds of the P119 million realized from the sale of MC Adore.
The seven who signed the notice for special session were Councilors Jesus Canto, Alvin Coquia, Librada Reyna, Luis Samson Jr., Guillermo Vallejos, Redford Mejia and Brian Lim.
Also on leave during that session was Vice Mayor Belen Fernandez, the SP’s presiding officer.
Both Seen and Fernandez noted that the programs and projects sought to be funded in the proposed supplemental budget were categorized in different nomenclatures, such as “development management”, with no details how the fund will be spent.
“We want the majority to give us the details of projects to be funded and where are these,” Fernandez added.
She noted that city hall was asking for an additional P6 million for the payment of electric bills to replace the payment for the city’s electric bill for period August to December 2012 paid out of the budget for 2013.
She said that P27 million was allotted in the 2013 budget for electricity alone.
“Kinukulang ang ating pondo sa electricity na kung susuriin ay pinaglaanan naman natin ng budget noon,” Fernandez noted.
Councilor Alfie Fernandez, a member of the majority, agreed with Seen and Maybelyn Fernandez that the request of city hall for a supplemental budget needs further study.
He also said the programs presented by the executive needs itemized details or itemized and all these can be approved.
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