Council asks for spending review

THE Cebu City Council has asked the executive department to explain how it spent the City Government's funds last year. The move came from the council's committee on budget and finance, after a review of the statement of income and expenses for 2012 that the City Accounting Office submitted to the legislative body. Based on the records of the accounting office, the budget and finance committee learned that the City spent a total of P668 million to buy motor vehicles last year. Budget and finance committee head Councilor Margarita Osmeña wants the General Services Office to provide a list of these motor vehicles. "We want to know where they are assigned and the valuation of each vehicle," she said in a committee report. Records of the accounting office showed that the City earned more than P4 billion last year and spent about P3.8 billion. Its revenues included the P866.9 million that the City earned in taxes collected from business establishments and the P340 million in taxes collected from real properties. The accounting office said the City had an estimated net income of P195.8 million for last year. Before work can start on the budget proposals for 2014, the council is going over expenses from last year. Councilor Osmeña, for one, learned that the City has spent a total of P129.3 million for supplies. "This item is the one of the highest expenses for the year 2012," she said. Osmeña requested the accounting office to provide details on the items included under that account. The City also spent more than P1 billion for maintenance and other operating expenses. This, Osmeña said is the second highest class of expenses, next to the P1.2 billion for personnel services, that the City incurred in 2012. "The accounting office is requested to provide a breakdown of this account for the enlightenment as to what expenses were incurred during the period," she said. Moreover, Osmeña wants the accounting office to submit a breakdown on the use of the City's more than P430 million Special Education Fund last year, particularly on the construction of new school buildings. She also wants the Department of Engineering and Public Works to provide a breakdown of the more than P130.5 million in construction materials that the City purchased last year and what construction projects they were used for. Other items that the council wants to know are the city's cash in banks, accounts receivables and disallowances.