Mandaue official asked to comment on bonus

The Commission on Audit asked Mandaue City elected officials and three department heads to comment on the audit observations disallowing the city government's granting of employees extra cash gifts for calendar year 2004 and 2005.

Melba Macapobre, COA team leader in the city, in her two-page Audit Observation Memorandum, asked Mayor Thadeo Ouano, Vice Mayor Amadeo Seno Jr. and all members of the city council for their comments.

The city's budget officer, accountant and treasurer were also told to do the same.

Macapobre in her AOM no. 2006-17-100 (05) dated last Wednesday said that employees additional/extra cash gift for calendar year 2004 in the amount of P15,441,546 were charged to current years appropriation in violation of the provision of Section 50 of Republic Act 7160.

Section 50 provides that all lawful expenditures and obligations incurred during a fiscal year shall be taken up in the accounts of that year.

Furthermore, she said the said expenditures violated the provisions of Local Budget Memorandum no. 2004-45 which provides that the extra cash gift shall be within the personnel services limitation.

The Department of Budget and Management disallowed the grant of the extra cash gift in 2004 since the 45 percent personal services was exceeded.

Despite of the 2004 disallowance, the city government again granted another extra cash gift in 2005 amounting to P18 million for its more than 2,000 employees.

Macapobre added that the lump sum appropriation from the calamity fund in the amount of P18 million being utilized to fund the obligation for the 2005 extra cash gift, is in violation of Section 5-b (4) of Republic act 8185.

Section 5-b (4) provides that any unexpended balance of the calamity fund at the end of the year shall revert to the unappropriated surplus for re-appropriation during the succeeding budget year.

She further said that the expenditures is in violation of the provisions of Section 2.1 of the Local Budget Memorandum no. 2005-48 dated December 7, 2005, which provides that extra cash gift benefit shall be within the personnel services limitation.

The DBM again disallowed the appropriation in as much as the 45 percent personnel services ceiling of the city has been exceeded.

City hall employees have made a deed of undertaking that in case COA will disallow such benefit, they will reimburse the amount they have received.