5.9. The analysis is summarized below:
Particulars 2024 2023 2022
Cash, Local Treasury ₱ 829,143.67 ₱ 1,094,084.43 ₱ 807,454.82
Cash, Cash in Bank 395,434,996.02 322,297,645.10 297,624,407.93
Total Cash Available ₱ 396,264,139.69 ₱ 323,391,729.53 ₱ 298,431,862.75
Deductions:
Total Obligations and Budgeted
431,837,179.13 394,314,622.81 330,932,360.40
Capital Outlay
Total Operating Expenses 233,916,152.77 216,664,081.53 193,723,683.87
Cash Available for Investment ₱ (269,489,192.21) ₱ (287,586,974.81) ₱ (226,224,181.52)
5.10. These figures show negative cash available for investment in all three years. As
such, the placement of funds in time deposits did not meet the criteria for idle funds
as defined in Section 22 of COA Circular No. 92-382. Idle funds must represent
surplus cash remaining after accounting for regular and recurring financial
obligations.
5.11. Moreover, the absence of supporting computations and the evident cash shortfall
cast doubt on the appropriateness and compliance of the investment decision. This
raises concerns regarding the Municipality’s adherence to sound financial
management practices and regulatory requirements.
Lack of Supporting Documents for the LBP Time Deposits
5.12. Aside from the absence of idle funds, there is a lack of supporting documentation for
the time deposits placed with the LBP. To validate the legitimacy and purpose of
these deposits, the Audit Team requested the relevant authorizing documents from
the Municipal Treasurer’s Office. In response, the following were provided:
5.12.1 SB Resolution No. 104 s. 2013, which authorized the replacement of deposits
under a Deed of Assignment with Hold-Out with a special savings deposit at
the Development Bank of the Philippines (DBP) in relation to a ₱15 million
DBP Loan;
5.12.2 SB Resolution No. 183 s. 2017, which approved the transfer of ₱1 million
from the First Consolidated Bank, Inc. (FCB) to a time deposit with the
Philippine Veterans Bank (PVB); and
5.12.3 Photocopies of passbooks, submitted in lieu of Certificates of Time Deposit
5.13. The time deposits with DBP were originally intended to serve as hold-out collateral
for the aforementioned P15 million loan. However, the loan has already been fully
settled. Bank confirmation from DBP revealed that the time deposits are currently
being held against a different outstanding loan, one not covered by the referenced SB
Resolution, raising concerns about the lack of updated authorizations.
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