Talisay told: Stop placing education fund on time deposits

CEBU, Philippines - The Commission on Audit has recommended before the Talisay City government to terminate its savings deposit in a bank as it pointed out that it would be inappropriate that funds intended for construction and repair of schools is instead used for investment.

The government state auditors examined the books of accounts of the city government and found out that huge amount of Special Education Fund (SEF) has been placed on time deposits with the Land Bank of the Philippines. The deposits amounted to P2,350,842.23.

"Investment of SEF funds in time deposits is not allowed," the COA report read.

The COA said placing of SEF funds in time deposit is not included in the educational programs and guidelines.

COA reminded the city government on Section 272 of the Local Government Code which provides that the SEF shall be allocated for the operations and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals and sports development, as determined and approved by the board.

The bank transaction is scheduled to mature every 30 days with automatic renewal. 

Meanwhile, the COA also took notice on the payment of various celebrations conducted by the city government on various celebrations and payment for honorarium intended for the curator of the Museo de Talisay.

The city government paid Myrna Rosario, who is the curator of the museum, with an honorarium of P10,000 per month for the period of five months from January to March in 2014. But COA said that this was a violation because payment for honorarium should not be taken from the Special Education Fund.

Audit observation found out that the city government also disbursed the amount of P2,742,854 for various celebrations like Sinulog sa Kabataan, Miss Nutrition, Rizal Day celebration, ALS month celebration. 

The government state auditors reminded the city government to refrain from using the funds. "There is nothing in the circular that authorizes the use of funds intended for celebrations," the report read. 

Mayor Johnny De los Reyes, in his justification to COA, said that their payment was only based on the approved budget by the Local School Board.

However, the city promised to call up the attention of the Local School Board in the preparation of budget, which conforms to the SEF guidelines.  (FREEMAN)