COA orders Moalboal to refund P1.2M in employees allowances

The Commission on Audit has ordered the Moalboal municipal government to refund a total of P1.2 million that it disbursed, without legal basis, for medical, rice and subsistence allowances and anniversary bonus to its employees.

COA found out that Moalboal granted a total of P305,000 in medicine allowance, P272,000 in rice and subsistence allowance, and P165,000 in anniversary bonuses-amounting to P1,197,000.

COA said that even if these disbursements were covered with audit observation memorandum no. 2006-001, such allowances were taken from the personnel benefit account, and have no legal basis.

It was also found that the town council initially intended to include in the 2005 annual budget a monthly cell load allowance of P2500 for every employee.

But the employees' association, in lieu of such allowance, lobbied for a uniform employee benefit instead, a request that the council eventually approved.

Mayor Inocentes Cabaron and the municipal accountant, however, commented on the COA findings saying that the town council approved the 2005 annual budget, including provisions for incentives of the collective negotiating agreement.

Under the CNA, each officer and employee should receive a yearly medicine allowance of P5000, and P1000 rice or subsistence allowance.

On the anniversary bonuses, however, the town officials admitted that the release was "an oversight and an honest mistake."

The outgoing budget officer might have overlooked the inclusion of the anniversary bonus in the 2005 annual budget, they said adding they are amenable to refund the money to the government.

But the auditor issued a rejoinder stating that the medicine and rice allowances were an offshoot to the initially considered cell load allowance, which was later shelved due to the employees' demand for uniform employee benefits instead.

But under Budget Circular NO. 2006-1, the sources of funds for CNA benefits should be taken from the savings of the municipal government, out of its cost-cutting measures.

Municipal officials should allocate and disburse public funds for legal purpose only in accordance to existing laws, rules and resolutions, the COA said. - Flor Z. Perolina