5.14. As for the time deposit with PVB, it was confirmed to have originated from a transfer
of funds previously held with FCB. This deposit was likewise originally designated
as a hold-out for employee loans.
5.15. Regarding the LBP time deposits, an inquiry with the Municipal Treasurer’s Office
revealed that no supporting resolutions or authorization could be located, either by
the Municipality or the bank. The accounts in question were reportedly opened more
than 10 years ago. The Treasurer’s Office, however, asserted that LBP would not
have opened such accounts without proper authorization from the Municipality at the
time.
5.16. Due to the lack of submitted documents, the purpose of the time deposit placement
could not be fully verified.
5.17. We recommended that Management:
5.17.1 Cease the placement of funds in time deposits unless properly supported
by a detailed computation showing excess funds beyond the
Municipality’s normal operating and financial requirements, in
accordance with Sections 21 and 22 of COA Circular No. 92-382; and
5.17.2 Instruct the Municipal Treasurer to retrieve and submit complete
supporting documents for all existing time deposit accounts, particularly
those under LBP, to validate the legality and appropriateness of such
investments.
5.18. The Municipal Treasurer mentioned that despite their efforts to locate the necessary
documents, they could only submit those related to bank accounts opened during his
term, as the other accounts were opened by the previous Municipal Treasurer. He
added that the deposits earn the Municipality substantial interest income due to
higher interest rates compared to a regular savings account. He further explained
that they considered these funds idle, as they are under protest and remain
unutilized pending resolution. Nevertheless, he agreed to comply with the
termination of the time deposits and the transfer of these to regular savings accounts
once they mature.
Delinquent RPT and SET
6. Delinquent Real Property Taxes (RPT) and Special Education Taxes (SET)
including penalties accruing thereon which accumulated to ₱18,374,734.90
remained uncollected as of December 31, 2024, depriving the Municipality of
substantial amount of income which could have been utilized to finance the
implementation of various development projects or other major
programs/projects/activities (PPAs).
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