• Tue. Apr 16th, 2024

    Cavite News

    Upholding Truth

    Persistent Financial Shortfalls in Kawit, Cavite: A Decade of Cash Deficits – COA

    The financial challenges facing the Municipality of Kawit, Cavite, have deepened, as revealed by a recent Commission on Audit (COA) report.

    The municipality has consistently failed to meet its projected income from local sources, leading to a decade-long history of cash deficits.

    For the calendar year 2022, the estimated income from local sources was projected at PHP 439,170,963.94, encompassing both tax and non-tax revenues.

    However, the actual income realized was only PHP 212,904,550.25, a mere 48.48 percent of the expected amount.

    This shortfall in revenue realization has been a recurring issue for several years, as evidenced by the following data:

    Calendar YearCash and Cash EquivalentCurrent Liabilities and Continuing AppropriationsCash Deficit
    CY 2012PHP 149,720,406.16PHP 253,597,052.81(PHP 103,876,646.65)
    CY 2013PHP 48,910,558.21PHP 86,531,840.00(PHP 37,621,281.79)
    CY 2014PHP 76,022,573.12PHP 99,198,434.16(PHP 23,175,861.04)
    CY 2015PHP 78,203,489.10PHP 80,759,976.65(PHP 2,556,487.55)
    CY 2016PHP 83,095,109.29PHP 103,207,192.60(PHP 20,112,083.31)
    CY 2017PHP 106,778,435.19PHP 122,026,827.57(PHP 15,248,392.38)
    CY 2018PHP 147,579,596.01PHP 160,244,029.62(PHP 12,664,433.61)
    CY 2019PHP 125,673,495.93PHP 151,017,118.18(PHP 25,343,622.25)
    CY 2020PHP 104,772,964.74PHP 125,600,370.73(PHP 20,827,405.99)
    CY 2021PHP 98,980,279.37PHP 127,595,127.01(PHP 28,614,847.64)

    COA has urged the Municipal Mayor Angelo Aguinaldo to direct the Local Finance Committee to take decisive action to eliminate the cash overdraft.

    The committee is recommended to exercise prudence and control in managing the Kawit Municipality’s funds, limiting expenditures to within the actual income realized and collected during the year, and reducing unnecessary operating expenses until the cash overdraft is resolved.

    Furthermore, COA has reiterated its recommendation for the Municipal Mayor to instruct the Local Finance Committee to conduct a thorough analysis of the tax and non-tax revenues collected in previous years.

    This analysis should serve as the foundation for preparing a realistic and attainable Annual Budget for the upcoming fiscal year.

    Municipality of Kawit’s financial predicament highlights the critical need for improved fiscal management and accountability.

    The repeated cash deficits not only impede the Municipality’s ability to deliver essential services but also jeopardize its long-term financial sustainability, COA said.

    It is imperative for the local government to address these issues with urgency and transparency to restore fiscal stability and regain public trust, according to the COA Report.