SB2 under scrutiny for fund sources

THE Cebu City Council rescheduled the budget hearing for the executive department’s proposed Supplemental Budget 2 (SB2) on Aug. 26 after questions arose over the legality of its fund sources.

“Under the Local Government Code, you can’t use reversion of accounts as fund source for a supplemental budget. It can only be used for the annual budget,” Councilor Eugenio Gabuya said.

But Lawyer Joey Daluz III, a member of the local finance committee who presented the SB2 to the council yesterday afternoon, said it is allowed under Presidential Decree 1445.

Gabuya asked for a copy of the law Daluz mentioned which the finance committee was unable to give to the councilors yesterday.

Of the P600 million proposed SB2, P30 million was to be sourced from reversion of accounts payable to City Hall officers and employees from 2008 to 2011.

Necessary expenses

Retained Operating Surplus from last year’s budget worth P211 million and an unappropriated balance from this year’s annual budget worth P257 million were among the other sources of funds identified for SB2.

The proposed SB2 is needed by the executive department to cover “urgent and necessary expenses.”

In yesterday afternoon’s budget hearing, the council managed to deliberate on the fund sources before they concluded the session.

Councilor Sisinio Andales also questioned Daluz’s authority to represent the executive department on the SB2 deliberations.

He said an executive order by the mayor which expanded the committee’s members was not approved by the council.

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