State auditor IV Melba Macapobre, in her audit observation sent to Seno and members of the city council last March 13, 2006, stated that at least P350,000 has been disallowed in the salaries of the officials while a total of P29,000 was disallowed for the 13th month pay for the period of July 2005 to December 2005.
Aside from the elected officials, former city auditor Helen Hilayo also incurred a salary disallowance of P660,945 over the same period.
Macapobre, in her recommendation, told city officials to stop the grant of salaries to elected officials which are over the allowed rates and require the refund of the overpaid salaries; follow strictly the exception mentioned in the review to ensure that the disbursement of funds by the payment of salaries be within the allowable rate.
She added that said officials were paid with their salaries and other benefits based on the rates under Salary Grade 27 Step 8 instead of the allowed rate, which is only Salary Grade 27 Step 1.
COA, through audit observation memorandums issued in the past years, has repeatedly warned officials to stop the overpayment but Seno and the councilors have also continuously filed their appeal before the COA regional office saying that the basis of the adjustment that the City Council of 1995 used for the increase in salaries was Section 81 of the Local Government Code, which states that the local council will determine the compensation of local officials as long as the increase takes effect after the terms of those who approved it. - Mitchelle P. Calipayan