“CORRECTION, PLEASE!”

CONTRARY to what was earlier reported by the Dagupan City Budget Officer that there is only P12 million in the city coffer left by the Lim administration to run the city in the next six months, the new administration of Mayor Belen Fernandez has actually only P8.5 million cash on hand against a total projected expense of P56.3 million.

Documents made public last week by the City Budget Office, this time by a supervisor in the budget office, show the real financial standing of the city, indicating the reckless spending of the previous administration under former Mayor Benjamin Lim.

City Budget Officer Virgilio Tangco reportedly already submitted his resignation to Mayor Fernandez last week.

Luz de Guzman, supervising administrative officer, said P8.5 million is all that remains of the P612 million approved budget for 2013 after deducting the expenditures made by the past city administration in the amount of P356.1 million.

The P255.5 million balance, or 42 percent of the total budget for the year, will be pruned down to P18.5 million with the exclusion of mandatory requirements such as the calamity fund at P18.8 million; 20 per cent development fund, P29 million; personal services, P126.4 million; Maintenance and Other Operating Expenses for regular offices, P36.2 million; and debt servicing, P26.3 million.

However, P10 million of the P18.5 million remaining balance are already earmarked for different programs and projects.

These projects include the anti-drug abuse program, P1.4 million; youth and sports development programs, P291,000; special projects and programs, P806,000; Public Enterprises and Revenue Generation Program, P1.9 million; Publication and Information Program, P714,000; Funds for Senior Citizens, P1.4 million; Gender and Development, P1.2 million; and Water Expenses, P2.1 million.

De Guzman said for the next six months, with a balance of P8.5 million, the city needs P47.8 million more to cover essential items. .

Projected expenditures are: electricity in the amount of P27 million; drugs and medicines, P3 million; salaries of Emergency Workers, P12 million (depending on the number to be hired); consultants, P3 million (depending on the number to be hired); allowances for barangay health workers, P1.9 million; Support for Volunteer Workers, P600,000; allowances Barangay Security Force (Tanods), P1.6 million; Barangay Nurses, P1.9 million; Barangay Service Point Officers, P585,000; Barangay Nutrition Scholars, P100,000; Security Guards, P3.2 million; Barangay Librarians, P100,000; Day Care Workers, P585,000 and Financial Assistance to Indigents under DSWD, P600,000.

WORST CASE

De Guzman, however, pointed out that the worst case scenario for Dagupan will occur if the P612 projected income in the 2013 budget will not be realized, a situation that is likely since the city already suffered a P44 million shortfall in collection last year from the projected revenue of P581 million.

She said that the supposed P1 million surplus reported in the trial balance in 2012 by former City Administrator Vlad Mata to the city council was “merely a smokescreen to hide the deficit”.

MISREPRESENTATION OF ACCOUNTS

This erroneous report was based on payments made in 2013 for P17.3 million in electric bills covering five and one half months in 2012 but were not made to appear in the 2013 books, a practice against Commission on Audit (COA) rules and regulations.

The practice was started in 2010 when it was made to appear that there was a surplus of P1.9 million but the city was not able to pay two months of electric bills in the amount of some P5 million, all of which were paid from the budget of 2011.

Then in 2011, P3.9 million surplus was reflected at the end of 2011 but P12 million in electric bills for four months that year was paid out of the 2012 budget.

De Guzman admitted that during the term of Mayor Alipio Fernandez Jr., preceding Lim, only the December 2009 electric bill in the amount of P2.5 was not paid and was covered in the succeeding year’s budget.

She stressed, however, that it was not a violation of the COA rules since electric billing normally comes after the covered month.

SPECIAL EDUCATION FUND

Records also attest that under Lim, electricity expenses of public schools drawn from the special education fund (SEF) were not paid on time.

The electric bills for schools for two months in 2010 in the amount of P2.8 million were paid from the 2011 budget while the electric bills for four months in 2011 in the amount of P13.8 million was paid from the 2012 budget.

Four months of electric bills in 2012 that amounted to P16.3 million was paid from the 2013 budget.

De Guzman admitted that she could not explain why the Lim administration incurred yearly deficits when former Mayor Alipio Fernandez Jr. left close to P300 million in the coffer when he bowed out of office.

At the same time, De Guzman noted that the P178.9 million appropriated in the non-office account for one year “is now exhausted or almost exhausted”, leaving a balance of just P45.4 million or 25 per cent.

With zero balance are those for Security and Protective Services Program; Development Management of the City; Nutrition Program; Social Services Program; Health Insurance Premiums for Indigents; Anti-Hawking Program; Engineering Services Program; Flood Mitigation and Control Program’ Tourism Infrastructure and Support Program; Investment Promotion Program; and Subsidy to various National Government Agencies.

City Auditor Virgilio Quinto is now reviewing all the city’s financial documents and vowed to come up with his findings and recommendations soon.

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