COA uncovers multi-million Sta. Barbara fiscal mess

By Ezee Ann C. Grecia

STA. BARBARA, Iloilo – Government auditors uncovered a multi-million fiscal mess here following the customary audit made on the municipal government’s operations.

With an increased income of some 16.14% on the over P70 million generated the previous fiscal year, the Commission on Audit (COA) likewise established though a 6.90% increase in expenditures pegged at over P4 million.

Further still, COA wants town officials and employees to make a full immediate refund of over P2.5 million in extra cash gifts. This, the Commission ruled, after said extra cash gifts were found to have been irregularly disbursed. COA ruled against the extra cash gift for exceeding the allowable Personnel Services limitation “thus resulting in the imbalance allocation of funds as majority was allocated for personal services.”

“We recommend that the Local Chief Executive adhere strictly to the maximum allowable PS cost and that the LGU may incur annually. We also recommend that he require the officials and employees concerned to refund the benefits claimed, ” excerpts of the COA report as obtained by The News Today (TNT) went. The order for refund has been addressed to Mayor Isabelo Maquino.

More fiscal worries here with the town’s Cash in Bank discovered to have over P1.3 million in unbooked and erroneous disbursements. Worse still, when State Auditors came to conduct the audit, no cashbook can be found.

As such COA recommended that Mayor Maquino and the Municipal Treasurer correct immediately the disbursements erroneously charged.

“We further recommend that the Municipal Treasurer locate her cashbook so she and the Municipal Accountant could reconcile their records… Although the Municipal Treasurer claimed that she maintains a cashbook for the Fund, this has not been presented. The NALGU Fund was not booked up by the Accounting Section thus cash and equity accounts were understated,” the COA report continued. NALGU is the National Assistance for Local Government Unit.

COA also uncovered P6,449,025.60 and P8,555,010.33 worth of accounts that remained unsettled “thus depriving the Funds of available cash for their operations.” These Intra-agency receivables/payables were found in the General Fund Books, Special Education Fund Books and Trust Fund Books.

The town also had problems with its government-mandated contributions particularly with the LGU share on PAG-IBIG contributions. COA discovered the erroneous government share with the LGU’s wrong deduction based on 2% monthly salary instead of 2% maximum fund salary.

Further still, town’s assets were not properly inventoried thus hindering COA to check and monitor accountability of end-users. A total of “233 with serviceable life” assets were recorded by the COA.

Also included in the latest COA audit were unremitted collections “thus cashbooks of the Municipal Treasurer are unreflective of these collections.”

COA also wants Mayor Maquino to rescind the town’s scholarship program with questions raised on some P96,000 in scholarship fund of 12 town scholars.

“We recommend that the Municipal Mayor rescind the scholarship program in the SEF. On the other hand, we recommend that he propose to the SB instead, the establishment of a Scholarship Fund in the GF to make education accessible to its poor but bright and deserving students.

COA in concluding its report also revealed uncollected rental market fees of P316,276.60.

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Local officials concerned should be made answerable for these anomalies.