The Commission on Audit in its report on the entire BFAR agency noted Region VII to have paid various allowances and incentives totaling P5,937,704.47 to its officials and employees without legal basis.
The said amount, COA said, was even misclassified, as it was taken from the Other Maintenance and Operating Expenses instead of from Other Personnel Benefits.
Such is contrary to a COA circular that requires the accountant to reclassify the allowances charged to account Other Maintenance and Operating Expenses to Other Personnel Benefits to arrive at a fair presentation of financial statements.
But other than that, another observation mentioned that these benefits were given without taking into consideration a section of the General Appropriation Act which provides that no government funds shall be utilized for the payment of honoraria, allowances or other forms of compensation to any government officials or employees except those provided by law.
The bulk of the said amount was paid for the Collective Negotiable Agreement Allowance worth P2.984 million. However, the Department of Budget and Management said it issued a ruling lately allowing the granting of CNA allowances for as long as these were given after the signing of the CNA and according to availability of funds.
Aside from that, P2.295 million was paid as grocery allowances, P638,000 for medical and dental benefits and P19,800 for other incentives.
COA recommended that management secure authority for payment of allowances and or stop payment of allowances and other benefits without legal basis to prevent the incurrence of irregular expenditures and unnecessary reduction in government funds. - Philippine Star News Service/MEEV