Cebu City officials warned on use of Supplemental Budget 2
THE Department of Budget and Management (DBM) warned Cebu City officials on the use of appropriations from the 2012 Supplemental Budget 2 to pay off prior year’s obligations and to implement projects not included in city’s Annual Investment Plan (AIP).
DBM regional director Carmela Fernan said that city officials would have to take “responsibility” for the disbursement of City Hall funds and make sure that disbursements complied with existing laws, rules and regulations.
Fernan said in a Feb. 13 letter to the City Council which she sent through Mayor Michael Rama that SB 2 totaling to P267.7 million and which the council passed on November 2012 “reveals substantial compliance” with provisions of the Local Government Code (LGC) on the preparation of budget ordinances.
DBM 7 was furnished a copy of SB for their Dec. 20, 2012 for its review.
questioned part
However, Fernan said in her letter that the SB was “inoperative in part” because part of the appropriation was spent on projects which were not included in the AIP and for the settlement of prior year’s obligations.
An appropriation of P23.5 million in SB2 for example was set aside to settle maintenance and other operating expense charges while another P1.1 million was set aside as aid to barangays from prior years.
Fernan’s letter said that this was in violation of section 350 of the LGC on the Accounting for Obligations which mentions that “all lawful expenditures and obligations incurred during a fiscal year shall be taken up in the accounts of that year.”
But DBM did not specify which of the projects funded by SB2 were not part of the 2012 AIP.
“It is understood that this review action does not authorize any item of appropriation that is specifically prohibited by law,” said Fernan’s letter copies of which were furnished to the city auditor, city treasurer, city accountant and budget
officer.
Councilor Jose Daluz III, former head of the council’s budget committee, said that DBM’s declaration of SB2 as an inoperative budget is not yet final.
The city council, he said, could still submit its reply to justify the appropriations made and if needed they could even file an appeal before the DBM national office and the Office of the President.
“What they are raising is a perennial argument that they are using. But after we submit our reply, I have not seen any document coming from them that they will insist on their arguments,” Daluz told Cebu Daily News.
Daluz said that the council also has the option to amend its 2012 AIP to address DBM’s concern on the implementation of projects which were not include in the AIP./Chief of Reporters Doris C. Bongcac
