CEBU City's net cash position declined by a little over P1 billion in February 2026, but officials said the decrease does not indicate a cash shortage, explaining that much of the month's collections had been transferred to time deposits while the City remained financially capable of meeting its obligations.
The clarification came after the City Accountant Office's statement of cash flows showed a net decrease in cash of P1.045 billion for the period.
The report, submitted to the City Council, showed the city's combined cash balance declined from P10.783 billion on February 1, 2026, to P9.738 billion as of February 28.
Time deposits excluded
Councilor Dave Tumulak, who chairs the budget and finance committee, said the figures should be read in their proper accounting context because the statement of cash flows excludes cash in bank–time deposit, which is reported separately under Commission on Audit (COA) rules.
He said Cebu City collected P1.105 billion in February, with about P1 billion transferred to cash in bank–time deposit. As a result, only P112.89 million was reflected as the month's remaining cash balance in the statement.
Tumulak also said the P1.218 billion in cash outflows largely covered existing obligations and payables rather than expenses incurred only during February.
"In totality, our cash balance (cash alone) still has a balance of P9.738 billion," Tumulak said, adding that the City remains liquid and able to meet its financial obligations.
Major disbursements
The statement of cash flows showed the City released more than P1.2 billion in payments during the month. The largest disbursements were P375.5 million to suppliers and creditors, P368.9 million for salaries and employee benefits, P323.1 million in other disbursements and P150.9 million for operating expenses.
Collections came from taxpayer payments, the city's share of National Government revenues, business and service income, interest income and other receipts.
For the general fund, which finances most City Government operations, the cash balance stood at P5.371 billion at the end of February, down from P6.422 billion at the beginning of the month.
Meanwhile, the special education fund increased by P26.4 million to P2.402 billion, while the trust fund declined by P21.09 million to P1.963 billion.
Cash advances
The financial report also showed Cebu City had P320.3 million in unliquidated cash advances as of Feb. 28.
Cash advances are funds released to government employees or offices for authorized purposes, including payroll, official activities and other government expenses. They must be liquidated by submitting supporting documents or by returning any unused amount.
The report included cash advances for payroll, petty cash funds and other authorized transactions. Their presence does not automatically indicate misuse of public funds because government offices are required to account for and settle them in accordance with government accounting rules.
Disaster funds
The city's Local Disaster Risk Reduction and Management Fund (LDRRMF) utilization report showed P4.736 billion in disaster funds remained unused as of February 28.
The amount consisted of P202.5 million under the quick response fund, intended for immediate disaster response, and P4.534 billion under the mitigation fund for disaster mitigation and preparedness projects.
The report showed no recorded utilization under the listed categories during the period.
Disaster funds, however, are not intended solely for emergency response. A substantial portion is allocated for long-term mitigation projects, preparedness programs and other disaster risk reduction activities. The remaining balance may prompt questions about the status of planned projects following recent flooding and the effects of past storms in the city.
Acting City Accountant Gilbert Tabasa endorsed the financial documents to the City Council on July 13, 2026, as part of the Department of the Interior and Local Government's transparency requirements.
The documents included the statement of cash flows, the report on unliquidated cash advances, the LDRRMF utilization report and the trust fund utilization report.
The figures reflect the City's financial position as of Feb. 28, 2026. More recent data are expected once the second-quarter financial statements are completed. (CAV)