Flash ReportCOA Reveals ₱234,678,771.45 Cash Deficit in LGU Kawit, Cavite

COA Reveals ₱234,678,771.45 Cash Deficit in LGU Kawit, Cavite

-

- Public Service Reminder -spot_img

KAWIT, Cavite — The Commission on Audit (COA) has released a report highlighting an alarming cash deficit of ₱234,678,771.45 in the local government unit (LGU) of Kawit, Cavite under Mayor Angelo Aguinaldo, for the calendar year 2023.

According to the audit, the municipality’s cash and cash equivalents were insufficient to cover current liabilities, leading to this significant financial shortfall as of December 31, 2023.

The report detailed that the General Fund had a cash and cash equivalent of ₱8,843,463.73, while the Trust Fund had ₱32,623,141.89.

However, these amounts were not enough to meet the current liabilities totaling ₱239,286,366.22 for the General Fund and ₱36,850,910.85 for the Trust Fund. This financial shortfall contravenes Section 337 of Republic Act No. 7160, known as the Local Government Code of 1991, which stipulates that local funds should not exceed 50% of the uncollected estimated revenues.

Over the past five years, the cash position of Kawit has worsened, with the cash deficit growing from ₱12,664,433.61 in CY 2018 to ₱234,678,771.45 in CY 2023. The COA report attributes this deficit primarily to the municipality’s inability to achieve its revenue targets from local sources, as evidenced by significant discrepancies between budgeted and actual revenues in 2023.

For instance, the budgeted tax revenue was ₱397,322,006.71, but the actual collection was only ₱218,221,605.17, a shortfall of ₱179,100,401.54.

The COA has recommended that the Municipal Mayor direct the Local Finance Committee to implement stringent measures to eliminate the cash overdraft. These measures include exercising diligence in managing municipal funds, limiting expenditures to the total income realized, and reducing unnecessary operating expenses until the deficit is resolved.

Furthermore, the COA suggested a thorough analysis of the tax and non-tax revenues from previous years to inform the preparation of a more realistic annual budget for the upcoming fiscal year. This step is crucial for ensuring financial stability and preventing future deficits.

The audit findings serve as a wake-up call for local officials to enhance revenue collection strategies and fiscal management practices to safeguard the financial health of Kawit, Cavite. The public awaits the response from local authorities on how they plan to address these financial challenges and restore fiscal balance.


Discover more from Cavite News

Subscribe to get the latest posts sent to your email.

cavite.news
cavite.newshttps://cavite.news
We, the people of Cavite, recognize that in order to achieve our goals and aspirations, we need to be empowered and well-informed of the news and events that affect us and our cities and towns. We need to have access to accurate, relevant, and timely information that will enable us to make informed decisions and take appropriate actions.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest news

Father, 5-Year-Old Son Killed in Dasmariñas Hostage Standoff; Second Child Wounded

DASMARIÑAS, Cavite — A 5-year-old child and his father died Monday after the man took his two children hostage...

Cavite Board Member Dela Cuesta Passes Away

DASMARIÑAS Mayor Jenny Barzaga expressed the city's condolences following the death of Board Member Jun Dela Cuesta. In a statement...

Ateneo de Manila to Open New Campus in Cavite by 2030 in GT Capital Partnership

GENERAL TRIAS CITY, Cavite — Ateneo de Manila University announced Monday that it will open a new campus in...

2 Drug Dealers Arrested in San Sebastian, Kawit Buy-Bust

KAWIT, Cavite — Police arrested two individuals in a buy-bust operation here Friday night on charges of selling and...
- Advertisement -spot_imgspot_img

LEGO Museum Opens in Amadeo, Cavite

AMADEO, Cavite – Brickseum, a new museum dedicated to LEGO brick creations, has opened to the public. Located along Tagaytay-Silang...

Warriors and Fighters from Cavite in the Philippine Revolution (1896–1898)

The Philippine Revolution, particularly in Cavite, saw the rise of the Katipunan (KKK) chapters Magdalo and Magdiwang, leading to...

Must read

New Road in Cavite Aims to Ease Congestion, Spur Development

DASMARIÑAS, Cavite— A new spur road is under construction...

Offset Shares a Video of Cardi B Giving Birth to Baby Kulture

What was expected of her was the same thing...
- Advertisement -spot_imgspot_img

You might also likeRELATED
Recommended to you