City accounting office clarifies promissory note requirement

THE head of the Cebu City Accounting Office denied requiring the barangay officials to execute a promissory note as a condition before the barangay’s estimates of income certificates will be released.

The certificate is a document showing the real property tax shares of the barangays and is one of the bases for the preparation of their 2017 budget.

The promissory note states that the barangay officials will return the P28.6-million incentive they received from the City Government last year that was disallowed by the Commission on Audit (COA) because it was charged to a wrong account.

In an interview yesterday, City Accountant Arlene Rentuza said the execution of a promissory note is only a measure they have taken to show COA that an action was made to address the disallowance.

She said the barangay treasurers may have misunderstood the directive of her office about the promissory note.

Rentuza said her office has not required anything before the barangay’s statement of income will be released.

Vice Mayor Edgardo Labella earlier questioned why Rentuza would require a promissory note when it’s the City Treasurer’s Office’s task to issue the certificate of estimates of income.

In a letter dated Oct. 13, he said the promissory note is not needed since the notice of disallowance issued by COA is still on appeal.

Rentuza said, though, the barangay officials have not yet presented a copy of their ap- peal. It was filed before COA last Oct. 26.

Concession

But taking that into consideration, Rentuza said the barangay officials can state in their promissory note that they can’t settle their disallowance yet because it is still on appeal.

“Actually, it’s a concession that we’re giving them. Otherwise, we won’t clear them of any accountability and liability. They can either issue an affidavit of undertaking, which is more troublesome, or they can execute a promissory note. Isn’t that good enough for them?” she said.

Rentuza said there are two barangay officials who want their disallowance deducted from their payroll. She did not name them.

But she said the deduction will only be made by the barangay treasurer handling their payrolls. The accounting office will only check the supporting documents.

Rentuza said the settlement of the disallowance is needed so the barangay officials can claim their leave credits.