January 15, 2025 | 12:00am
MANILA, Philippines — The Commission on Audit (COA) has flagged the city government of Baguio for having P4.43 billion in time deposits and several high yield savings accounts (HYSA) amid unpaid obligations and unimplemented priority development projects.
In a 2023 audit report on Baguio, the COA said the funds, placed under HYSA/time deposit and approximately totaling P4.45 billion as of December 2023, were in excess by P3.7 billion or 537 percent of idle funds amounting to P695 million.
The audit breakdown showed that 17 of the HYSA/time deposit accounts were with the Land Bank of the Philippines and have a yearend balance of P3.32 billion.
Seven other accounts were with the Development Bank of the Philippines, with a total yearend balance of P1.11 billion.
Based on COA Circular Nos. 92-382 and 92-382-A, only idle funds of local government units (LGUs) can be placed in time deposits and HYSAs.
The audit body said a review of the city government’s financial statement showed Baguio has idle funds of only P695 million as of December 2023, which should have been placed under time deposit during the first quarter of 2024.
“Apparently, the fund placed under time deposits were obtained from funds intended for payment or settlement of current liabilities and to cover the budgeted regular and recurring operating expenses for calendar year 2024,” the COA said.
It said that such conditions resulted in the accumulation of liabilities to suppliers and contractors, unsettled obligations to officers and employees, and unremitted amounts in favor of other government agencies.
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