Council starts probe of city’s finances

CITY OF SAN FERNANDO — The 5th City Council of San Fernando has started its inquiry “in aid of legislation” of the city’s financial status with a series of committee hearings and plenary discussions.

In his report during the last session of the City Council, Councilor Joselito Ocampo, Committee on Good Government, Public Ethics and Accountability said that the probe was meant “to understand the financial position of the local government unit (LGU) by determining the amount of assets and liabilities as of June 30” and for Giselle Rivera, city accountant and Ann Bautista, city treasurer, together with other members of the Local Finance Committee “to clarify alleged un-reconciled differences” in the balance sheet of the General Fund.

Ocampo, however, lamented the failure of the accountant to attend the July 30 committee meeting due to some reasons and despite the permission of Mayor Edwin Santiago, was hindering the inquiry: “The committee meeting aims to understand the financial position of the local government unit by determining the amount of assets and liabilities as of June 30. However, because of the absence of the accountant, this object was not realized. Members of the Finance Committee present, namely Engr. Fernando Limbitco, city administrator and Eda Panganiban, city auditor were not ina position to answer the questions of the committee particularly on the nature, details and existence of the assets.”

He noted in his report to the plenary that the cash flow from July 1 to December 31 this year, in which the treasurer’s report was indicated as “official” and the accountant’s report as “unofficial,” showed figures which have to be reconciled.

“According to the city accountant and treasurer, the estimated cash balance as of December 31 (net of fixed expenses and contractual obligations) that will be used to finance LGU programs and projects amounts to P188,522,983. Actual cash as of June 30, as the treasurer reported is P360,303,960 but accountant reported that it is P73,783,062. The difference of P286,520,898 has to be reconciled by the treasurer together with the accountant,” Ocampo said.

Ocampo and Councilor Nelson Lingat of Appropriations and vice chair Noel Tulabut also questioned the report that some items and amounts in the balance sheet including advances to contractors and employees, and “significant inventories” of gasoline, medicines, construction materials and office supplies among many others, amounting to P153,236,732.

“Why maintain significant inventories of these? Where are they located? Why give advances to contractors? Why is there a continuous purchase of such items to date?” they asked, with Ocampo further questioning if these would have to be included in the 2014 budget, with the reported significant amount of materials and supplies inventory.

Issues and questions, he added, were also raised as to some recorded liabilities as to their nature and details, and whether these were all recorded as of June 30.

“It was decided per motion of Vice Mayor Jimmy Lazatin that the Finance Committee represented by Limbitco and Panganiban, to task Bautista to confirm the balance of cash recorded in the bank’s books and request for bank statements. Also, Councilor Nelson Lingat mentioned Rivera to explain on her failure to attend the committee meeting and appraise the committee on the financial condition and operation of the city,” furthered Ocampo.

Accountable to Fernandinos

Lazatin, Tulabut and Ocampo told Sun.Star Pampanga that city officials are accountable to the people.

“It is the right of every Fernandino to know about the financial status of the city. Just what will we tell they ask about it? This is the very essence of the inquiry. It must be established soon so we can move ahead with our mandate to serve our constituents,” they said.

Just right

Santiago and Limbitco, meanwhile, branded the inquiry as “just right with proper processes.”

“The City Council inquiry is just right. It is in line with due processes and principles of transparency. Everything will be reconciled, we’re certain of that,” the two officials said.

http://www.sunstar.com.ph/pampanga/local-news/2013/08/04/council-starts-probe-city-s-finances-296073

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