ILOILO CITY — The Commission on Audit (COA) has flagged delays in the release of barangays’ 30-percent share from basic real property tax (RPT) collections by the Iloilo City government, with ₱218.56 million recorded as due to barangays as of December 31, 2025.
In its audit findings, COA said the delayed release of barangay shares was inconsistent with Section 271 of Republic Act No. 7160, or the Local Government Code of 1991, which requires the city government to distribute 70 percent of RPT proceeds to its general fund and the remaining 30 percent among its component barangays.
The law also requires each barangay’s share to be released directly to its treasurer on a quarterly basis, within five days after the end of each quarter, without the need for further action by the barangay.
However, COA’s review of the city government’s accounting records showed that the total amount due to local government units and barangays reached ₱220.46 million at the end of 2025.
Of this amount, ₱218.56 million represented the 30-percent share of barangays from basic RPT collections, comprising ₱202.24 million under the General Fund and ₱16.32 million under the Trust Fund.
The remaining balances consisted of other recorded obligations, including shares for the City Aid and Katarungan Pambarangay Authority, the Philippine Coconut Authority, barangay clearances and community tax.
COA further reported that verification of compliance with the prescribed release schedule showed delays of up to 37 days.
For the first quarter of 2025, the scheduled release date was April 7, but the payroll date was April 15, with the funds becoming available on May 7 — a delay of 31 days based on the audit team’s computation.
For the second quarter, the scheduled release was July 7, while the payroll date was July 10 and the funds became available on August 5, resulting in a 30-day delay.
For the third quarter, the scheduled release was October 6, the payroll date was October 15, and the funds became available on November 11, representing a 37-day delay.
The report also indicated that the fourth-quarter 2025 barangay shares were not yet available for release as of the audit’s reporting period.
City cites unclaimed checks and processing delays
In its discussion with the audit team, the City Treasurer’s Office disclosed that 79 checks representing barangay RPT shares from collections during the second and third quarters of 2025 remained unclaimed by the concerned barangay treasurers.
The Treasurer’s Office said the delay in making the checks available may have been attributable to the processes undertaken before their issuance.
The audit finding raises concerns about the timely availability of funds intended to support basic services and local programs at the barangay level.
COA stressed that the timely release of the statutory 30-percent share is essential to ensure that barangays have the resources needed to deliver public services and implement community projects.
It added that delays and the accumulation of unclaimed or idle balances undermine the intent of the law by depriving barangays of funds rightfully due to them.
COA pushes electronic payments and stronger follow-ups
The audit team reiterated its recommendation from the previous year’s audit to adopt electronic payment mechanisms for government transactions, as provided under COA Circular No. 2021-014.
According to the report, the City Treasurer’s designated focal person said coordination with authorized government depository banks had been undertaken on March 25, 2026, and the city government was in the process of integrating electronic payment mechanisms for the release of barangay shares.
COA recommended that the City Treasurer issue written notices and conduct follow-ups with the concerned punong barangays and barangay treasurers regarding their unclaimed shares.
It also called for the expedited implementation of electronic payments to facilitate the direct and timely crediting of barangay funds.
The city government’s management agreed to both recommendations.
The audit finding underscores the need for the city government to improve its fund-release procedures and coordination with barangays to ensure that statutory allocations are made available within the period prescribed by law.
While the report identifies unclaimed checks and pre-issuance processing as factors cited by the Treasurer’s Office, the prescribed quarterly release schedule remains the central compliance requirement.
The COA findings do not, by themselves, establish that the delayed releases resulted from fraud or intentional wrongdoing. They do, however, identify a compliance and fund-disbursement issue that city officials are expected to address through the corrective measures agreed upon with the audit team.
