CoA: Manila owes city school P236M

The Pamantasan ng Lungsod ng Maynila (PLM) failed to collect P236.92 million from the Manila City government in 2010 to the detriment of the school and its students, according to the Commission on Audit (CoA).

According to CoA, the university’s Board of Regents did not pursue the release of the subsidy, its main source of funding for its operations. The PLM is a nonstock, nonprofit institution.

The CoA said that PLM was supposed to receive P315.89 million in financial assistance from the city government last year although it collected only P78.972 million.

“It was noted that the University did not realize its targeted income due to the failure of the Board of Regents to pursue the collection of its subsidy… from the City Government of Manila amounting to P236,917,567,” it noted in its report.

Students disadvantaged

As a result, the “majority of the proposed projects for the improvement of school facilities as well as the procurement of necessary equipment, furniture and fixtures were not implemented during the year to the disadvantage of its students,” CoA said.

For their part, PLM officials told the audit agency that the release of the subsidy was deferred as the city government did not have enough funds.

They also said that the city mayor had discouraged them from implementing tuition hikes and collecting entrance exam fees from applicants—additional sources of revenues which could have been added to school funds.

In its report, CoA advised PLM officials to do their best to collect the university’s subsidy from the city government so that there would be enough funds for their priority projects and activities.

It also suggested that the Board of Regents explore other options to generate added income for the school.

According to the PLM web site, the university provides free tertiary education to financially less-privileged but talented graduates of Manila’s public schools although it can also admit students who are non-Manila residents under a scholarship program.

Obligations settled

Sought for comment, Secretary to the Mayor Rafaelito Garayblas, also the acting PLM president, told the Inquirer that the city government settled its obligations to the university last month.

“The second-quarter subsidy was forwarded last month to the school’s finance officer by the City Treasurer’s Office. As far as I know, PLM no longer has any collectible subsidy from the city government. The subsidy [has been] updated,” Garayblas said.

According to him, PLM receives a quarterly subsidy of P78 million from the city government.