PB OKs report to restore P986.9 million deleted budget

CEBU, Philippines — The Cebu Provincial Board has approved Monday the committee report on the proposed revocation of an ordinance deleting the total amount of almost P1billion continuing appropriations for the years 2005 to 2013.

Also approved by the body was the report of the Local Finance Committee, said PB Member Glenn Anthony Soco, who heads the Committee on Budget and Appropriations.

 Soco said the proposed measure revoking Ordinance No. 2018-11 will be submitted for second reading on Monday.

 The present administration of Governor Gwendolyn Garcia moved to reinstate the almost P1 billion continuing appropriations for the years 2005 to 2013 that were deleted through an ordinance during the administration of now Vice Governor Hilario Davide III.

Ordinance No. 2018-11 deleted the total amount of P986.9 million continuing appropriations because it allegedly has no cash support in the budgetary records.

  Authored by PB Member Miguel Antonio Magpale, the ordinance was passed on August 13, 2018 and was approved by then governor Davide on August 24, 2018.

 In a letter dated July 11, 2019, Provincial Accountant Marieto Ypil informed Garcia that perusal of the Province’s Financial Position as reflected in its General Fund Balance Sheet and Statement of Cash Flows as of December 31, 2015, a year prior to the deletion, shows a net Cash Balance of P1,134,477,528.70 which is more than enough to fund the deleted continuing appropriation at yearend.

The General Fund Cash Balance as of June 30, 2018 is P2,867,663,696.16 and the Cash Report of the Provincial Treasurer as of June 29, 2018 also reflected a General Fund Cash Position of P3.031,097,170 immediately prior to the enactment of the PB Ordinance.

 Ypil said the current net Cash Balance based on the Financial Statements as of May 31, 2019 is P3,000,292,931.61.

 Soco said that based on available records, there is sufficient cash support or cash back up for the items covered therein, hence said Ordinance No. 2018-18 has no factual basis.

 “Said deletion also finds no legal basis as there is no law authorizing for the deletion of the unexpended and continuing balance on the budget of local government units,” Soco said.

Ypil, in his letter to the governor, cited Section 322 of Republic Act No. 7160 otherwise known as the Local Government Code of 1991.

 It provides that, “appropriations for capital outlays shall continue and remain valid until fully spent, reverted or the project is completed. Reversions of continuing appropriations shall not be allowed unless obligations therefor have been fully paid or otherwise settled.

 The balances of continuing appropriations shall be reviewed as part of the annual budget preparation and the Sanggunian concerned may approve, upon recommendation of the local chief executive, the reversion of funds no longer needed in connection with the activities funded by said continuing appropriations subject to the provisions of this Section.”—  FPL (FREEMAN)