BY GEROME DALIPE IV
ILOILO City – The Commission on Audit (COA) has flagged the municipal government of Lemery for releasing a total of P452,000 in stipends and benefits to its officials and employees in 2023.
According to the COA, the allowances and benefits granted to municipal officials and employees were disbursed without proper authorization or justification under existing laws or regulations.
In its 2023 annual audit reports, the state auditors deemed as “irregular disbursements” the grant of benefits and allowances, productivity incentive allowance, and benefit and communication allowance amounting to P208,000 and P244,000, respectively.
The auditors said the municipal officials and employees in 2023 were granted benefits and allowances despite the absence of a legal basis.
Auditors’ review of the town’s transactions for 2023 disclosed the Lemery municipal government granted a productivity incentive allowance totaling P208,000 or P2,000 per official and employee.
Likewise, the municipality also paid a mobile load allowance in 2023 totaling P 244,000, equivalent to P1,000 per month, to each department head and member of the Sangguniang Bayan.
In May 2023, the auditors noted that the municipality granted in advance, a cash gift totaling P291,000.00 or P2,500 per official and employee.
But under the Department of Budget and Management Circular No. 2016-4 dated April 28, 2016, the year-end bonus equivalent to one-month basic pay as of October 31 and a cash gift of P5.000 shall be given to entitled government personnel not earlier than November 15 of the current year.
Hence, the auditors ruled the municipal government has no authority to grant such a bonus earlier than what is stipulated in the circular.
Explanation
During the exit conference, the municipal accountant explained that it has been the practice of their municipality to disburse or grant to its officers and employees the said incentive and allowance annually or monthly.
However, the auditors noted that the said incentive and allowance are not among the standard and special-purpose allowances and benefits provided in the Total Compensation Framework established under the law which covers the civilian government personnel in the local government units.
Likewise, the auditors said there is no other statutory authority, and rules and regulations promulgated by competent authority expressly provide the granting of such allowances.
With regard to the communication allowance paid in the form of mobile loads, the auditors observed that the budget thereof was included in the Maintenance and Other Operating Expenses (MOOE) of every department.
“Thus, construing the purpose of its appropriation, the said expense should be provided to the department as an operating expense,” read the audit report.
However, the COA said payment was given directly to the department head in the form of a monthly allowance, hence considered as an additional benefit granted to the employees concerned.
The auditors said the municipal officials explained that in the conduct of their duties, they also need to make and return official calls to various offices. However, the auditors emphasized the grant of allowances must have a legal basis.
In the report, the auditors recommended discontinuing the granting of productivity incentive allowance and benefit and communication allowance to its officers and employees.
The municipal officials were also told the release of the payment of cash gift should not be earlier than November 15 of the current year as provided in DBM Budget Circular No. 2016-4 dated April 28, 2016./PN
