Tuesday, November 30, 2010

Budgets Cebu City LGU Style

The past few weeks has been nothing but series of meetings and presentations. The year is ending and it's budget season once more. The normal way of doing it is plan everything out for next year be it Capital Outlay, Maintenance Expenses and Personal Expenses of course and then include everything you need in next years budget in an Annual Investment Plan.

Since I joined the organization this has not happened yet. Their way of doing it is "skin and bones" budget and then just ask for additional budget in a Supplemental Budget (SB). But before a SB can happen, the City Treasurer has to certify if there is enough surplus to fund the SB of which the Budget Officer will also concurring. If there isn't enough then the other option is go into borrowings.

This year we are already on SB 5 (meaning we are already on our fifth supplemental budget for the year), the biggest ever in the history of the Cebu City. Question still left unanswered is, "Is there enough sources of funds?". Only the treasurer can answer that with the City Accountant will concur by generating financial statements.

But what is more intriguing about this SB is that the largest items in this budget are all ICT related and of which I had not been consulted, ever! This has caught the attention of a lot of the people from the different departments and offices of City Hall. Why? Because all of the budgeted items do not have a breakdown and no clear explanation of how it will be used. City councilors suddenly are questioning the motives of items and that why my department was never consulted in the first place. Then the woman behind it all emerged. It was one of the department managers. She was the culprit behind all of this. Was it Illegal, Unnecessary, Excessive, Extravagant, Unconscionable (IUEEU)?

Final decision? Budgets were cut, some items deleted and control of the technical description of the budgets given back to the department's control.

Lastly, I would like to thank all of the people behind me and who made this possible. She could have gotten away with it. By the grace of god she didn't
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