The Commission on Audit (COA), in its 2023 annual audit report, flagged over P609 million in unrecorded deposits and disbursements of the Cebu City Government under suspended City Mayor Michael Rama.

COA revealed that the P609-million figure represents a 788 percent increase from 2022.

The report indicated that credits or deposits in the city's current bank accounts amounting to P609,519,462.64 and disbursements totaling P27,795,565.32 from fiscal years 2014 to 2023 were not reflected in the books of accounts.

However, Cebu City Treasurer Mare Vae Reyes said the advance payments were not recorded due to a new system implemented in 2019.

She expressed optimism that the city can curb the increase by this year's audit.

Reyes clarified that the flagged amounts were deposited but not recorded in the city's books of accounts. She noted that these amounts have accumulated since the implementation of the new system in 2019, especially concerning Real Property Taxes.

The new system was implemented in coordination with COA, the city's Management Information and Computer Services (MICS), and the city's Accounting office.

Reyes admitted to "lapses" in handling these deposits but insisted that the responsibility should not fall solely on the CTO as it is a joint effort with other departments that should be dedicated to implementing the new system.

Reyes acknowledged that the 788 percent increase in unrecorded amounts is "alarming."

In addition to these findings, COA flagged unused medical equipment at Cebu City Medical Center, an "unrealistic" income projection, and a bloated budget of P50 billion.