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[av_heading heading=’Capitol hopeful COA will lift disallowance on 2013 bonus ‘ tag=’h3′ style=’blockquote modern-quote’ size=’30’ subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”]
BY GLENDA SOLOGASTOA
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Monday, November 20, 2017
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ILOILO – The provincial government is optimistic that the Commission on Audit (COA) will lift the Notice of Disallowance (ND) issued against the Productivity Enhancement Incentive (PEI) or bonus released to capitol employees in 2013.
According to the Provincial Legal Office, the municipal government of Balasan was issued an ND for its PEI in 2013, too, but COA recently lifted it.
“The Balasan PEI (P2.5 million) was eventually allowed because it did not exceed the municipal government’s Personal Services (PS) limitation. It was the same with the provincial government. We did not go over the PS limitation,” said Atty. Dennis Ventilacion, provincial legal officer.
The Provincial Legal Office’s Atty. Edgar Sumido handled Balasan’s appeal to COA on the ND.
Through Appropriation Ordinance No. 2013-007-A passed by the Sangguniang Bayan (SB) of Balasan, the municipal government released a PEI of P30,000 to each of official and employee. The budget was sourced from the terminal leaves of different offices and salaries for vacant positions in the offices of the mayor, treasurer and agriculturist.
Iloilo province, on the other hand, gave out a PEI of P35,000 to each capitol employee.
On July 15, 2015, COA issued an ND to the Balasan PEI on the ground that the amount granted was in excess of the P5,000 authorized under Executive Order (EO) No. 80 and Department of Budget and Management (DBM) Budget Circular No. 2013-3 dated Nov. 23, 2013.
The local government of Balasan, which failed to get a favorable ruling from COA Region 6, raised the matter to the COA central office.
According to the central office, the across-the-board application of P5,000 bonus ceiling applied only to employees in national government agencies and in other offices vested with fiscal autonomy, as well as in government-owned and -controlled corporations (GOCCS) and government financial institutions under the Governance Commission of GOCCs.
COA chairperson Michael Aguinaldo, further opined that for the grant of PEI in local governments, Section 9 of DBM Budget Circular No. 2013-3 applies.
The PEI shall be charged against the local government fund subject to the PS limitation in local government budgets pursuant to Sections 325 (a) and 331 (b) of Republic Act 7160 (Local Government Code), added Aguinaldo./PN
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