Audit report: Cebu City incurs P1 billion deficit in 2020
CEBU, Philippines — Cebu City incurred a deficit of at least P1 billion for 2020 after its expenditures for the year exceeded revenues, the Commission on Audit reported.
The city’s financial statements showed that its current operating expenses for the year ended 2020 was at P8,692,757,512.52 while its total revenues was at P7,095,995,317.55. This gave rise to a deficit of P1, 596,762,194.97, in stark contrast to a total surplus of P1.024 back in 2019.
All operations considered, Cebu City finished the year with total losses of over P1.648 billion.
The FREEMAN tried to contact city officials for comment but did not receive any response as of this writing.
The combined financial statements include the consolidated General Fund, consolidated Trust Fund, and the Special Education Fund.
Per the Statement of Financial Performance, the city’s total revenue of P7.095 billion came from its tax revenue, P3.224 billion; share from internal revenue collections, P2.230 billion; other share from national taxes, P251 million; service and business income, P1.171 billion; and miscellaneous income, P217 million.
The total revenue in 2020 was P328 million less than that in 2019, which stood at P7.424 billion.
Meanwhile, for 2020, Cebu City’s total expenses were pegged at P8.692 billion, broken down as follows: personnel services, P2.115 billAion; maintenance and other operating expenses, P6.069 billion; non-cash expenses, P438 million; and financial expenses, P69 million.
The total expenses in 2020 were P3.117 billion more than that in 2019, which was only P5.575 billion.
According to the Statement of Financial Position, Cebu City had total assets of P34.754 billion as of end-2020, of which current assets was P23.635 billion and non-current assets, P11.119 billion. The total assets in 2019 was P34.711 billion.
As for liabilities, the city posted a total of P17.073 billion for 2020 compared to 2019’s P16.169 billion.
The assets and liabilities considered, Cebu City, therefore, finished 2020 with a net worth or equity (assets less liabilities) of P17.681 billion, a dip from P18.541 billion in 2019. — JMD (FREEMAN)
- Latest
