ILOILO City – Barangays in this city were deprived of timely access to millions of pesos intended for basic services and community programs after the city government delayed the release of their legally mandated real property tax shares, with unpaid allocations reaching P218.56 million by the end of 2025, the Commission on Audit (COA) revealed.
The delayed releases were among a series of financial management deficiencies uncovered by state auditors, who also flagged P189.61 million in unsettled audit suspensions and disallowances, P16.60 million in unreconciled obligations to government agencies, and irregularities in procurement, cash advances and infrastructure project monitoring.
In its audit observations and recommendations covering the city government’s 2025 transactions, COA warned that persistent weaknesses in financial controls and compliance procedures could undermine accountability, delay public services and expose government resources to misuse.
BARANGAY FUNDS DELAYED
COA reported that the city government’s outstanding liabilities to barangays reached P220.457 million as of Dec. 31, 2025, of which P218.559 million, or 99.14 percent, represented their statutory 30-percent share of basic real property tax collections.
Under Section 271 of Republic Act No. 7160, or the Local Government Code, component barangays are entitled to 30 percent of basic real property tax collections, which must be distributed directly to their treasurers within five days after the end of each quarter.
However, auditors found that the city government failed to meet the prescribed deadlines during the first three quarters of 2025.
The first-quarter allocation was delayed by 31 days, the second-quarter share by 30 days, and the third-quarter allocation by 37 days.
The first-quarter share, which should have been available by April 7, was released for availability only on May 7. The second-quarter allocation, due July 7, became available on Aug. 5, while the third-quarter share, due Oct. 6, became available on Nov. 11.
The fourth-quarter allocation, due Jan. 5, 2026, had not yet been made available at the time covered by the audit findings.
Compounding the delays, COA discovered that 79 checks representing second- and third-quarter barangay allocations remained unclaimed by their respective treasurers.
State auditors warned that delayed releases and accumulating unclaimed balances deprived barangays of funds necessary to sustain essential public services and implement local development programs.
The City Treasurer’s Office attributed the delays partly to the administrative processes required before checks could be issued.
To address the problem, the city government coordinated with authorized government depository banks on March 25, 2026, to integrate electronic payment mechanisms for barangay allocations.
COA directed the City Treasurer to formally notify barangay officials of unclaimed shares and expedite the implementation of electronic fund transfers./PN
