THE revenues of Oslob town in southern Cebu are rebounding due to the return of tourists and visitors to the area following the easing of coronavirus disease (Covid-19) pandemic restrictions, although these have yet to return to the pre-pandemic 2019’s P303.8 million.
According to the 2022 Annual Audit Report of the Commission on Audit (COA), the local government unit (LGU) registered a 68 percent jump in total revenue to P229.9 million in 2022 from P136.8 million in 2021, with tourism revenue accounting for P35.3 million, or 15 percent, of the fourth-class municipality’s 2022 revenues.
However, the bad news is that state auditors have flagged several projects and transactions initiated by the Municipal Government, including those relating to cash advances, the hiring of a job order worker, and the delayed release of real property tax shares to the barangays.
Tourism
In terms of tourism revenue last year, Oslob’s P35.3 million was 10 times more than the P3.4 million it generated in 2021, when travel restrictions prevented most people from visiting the area.
The well-known whale shark viewing in Barangay Tan-awan accounted for the bulk of the tourism revenues at P31.03 million, an increase from P2.79 million in 2021.
Sumilon Island came in second with P3.08 million (up from P415,774 the year prior); followed by Luka/Tumalog Falls, P1.17 million (up from P156,309); and Monkey Viewing, P67,089 (from zero).
Even though the municipality’s tourism sector has begun to rebound, its income is still less than a fifth of what it was prior to the Covid-19 pandemic.
In 2019, tourism revenue was P190.2 million, with whale shark watching activities bringing in P182.7 million to the local government.
Total revenue
As for the town’s P229.9 million in total revenue last year, this was driven in large part by the 36 percent leap in its share of national taxes (National Tax Allotment, formerly Internal Revenue Allotment) to P165.6 million from P121.4 million; the 34 percent jump in its tax revenue to P9.8 million from P7.3 million; and the skyrocketing of shares, grants and donations to P12.2 million from a mere P84,280.26 the year prior.
Less P138.4 million in operating expenses, plus adjustments, this resulted in the town’s surplus hitting P78.97 million in 2022, which is 11 times more than its surplus of P7.17 million in 2021.
COA’s observation
State auditors, however, flagged several transactions initiated by the Municipal Government.
One of these is its failure to release the barangay share from its real property tax (RPT) collections totaling P1.009 million for 2021 on a quarterly basis, contrary to Section 271 of Republic Act 7160, or the Local Government Code of 1991, which provides for the barangay’s share to be released within five days after the end of each quarter.
Such failure deprived the barangays of the immediate use of the funds for their priority projects, COA said, noting that the RPT shares of the barangays were released more than a year after its receipt by the municipality.
Mayor Ronald Guaren agreed to the recommendation of COA to require the municipal accountant and treasurer to release the RPT share to barangays on a quarterly basis.
Double compensation
The state auditors also flagged the hiring and payment of salaries amounting to P60,000 to the LGU’s public information officer (PIO) through job order (JO), since the said PIO is an incumbent Sangguniang Kabataan (SK) chairperson of Barangay Lagunde, who is also receiving compensation in the barangay, resulting in double compensation, which COA said is illegal.
COA discovered that the PIO is receiving compensation of P500 per day from the municipal government, while also receiving a monthly honorarium of P6,831 from the barangay.
COA said this is a violation of Sections 94 and 95 of RA 7160.
Section 94 states that no elective or appointive local official shall be eligible for appointment or designation in any capacity to any public office or position during his tenure.
“Unless otherwise allowed by law or by the primary functions of his position, no elective or appointive local official shall hold any other office or employment in the government or any subdivision, agency or instrumentality thereof, including government-owned or -controlled corporations or their subsidiaries,” a portion of the provision reads.
Section 95 of the same law provides that no elective or appointive local official or employee shall receive additional, double or indirect compensation, unless specifically authorized by law, nor accept without the consent of Congress, any present, emoluments, office, or title of any kind from any foreign government.
But the mayor, in his response, said there is no prohibition on the hiring as job order worker of an elective local official because while the Local Government Code expressly prohibits the hiring of an elective local official in any capacity to any public office or position, a job order worker is not considered a public office or position.
He explained that the Civil Service Law states that job orders do not create an employer-employee relationship and are not considered government service.
The mayor said he hired JO personnel to augment the existing municipal employees to serve the general welfare of the people and that they let hired JO workers choose whether to continue receiving their honorarium or refrain from receiving the same as they are now being hired as job order workers in the Municipality.
But COA stood firm, saying RA 7160 bars elective local officials from holding any other employment in government and receiving additional compensation.
“Thus, the elective local official must choose whether to continue as barangay official or job order of the Municipality,” COA said.
Cash advance
The state auditors also flagged the grant of P1.013 million cash advance to the municipal mayor for purposes other than official travel, who at the same was not bonded at the time of the grant, contravening the policies and guidelines on the grant of cash advances.
With a check dated July 28, 2022, the particulars of the cash advance for operational expenses for the Pasigarbo sa Sugbo comprised P520,000 for meals, P302,000 for talent fee, P134,200 for performer’s allowance, P37,000 for make-up (labor and materials) and P20,000 for audio van.
COA said the mayor was allowed to make a cash advance for the expenditures instead of a permanent appointed official since the check was issued to the former.
COA also later learned that the municipal mayor was not bonded yet until the confirmation date for bonding on Sept. 6, 2022, contrary to the policies and guidelines in granting cash advances.
As of Dec. 31, 2022, a total of P3.902 million was noted by COA for audit suspensions, disallowances and charges of the LGU. (TPT)