COA tells Santander execs to refund increase in RATA

The Commission on Audit has ordered the officials of Santander town to refund a total of P156,580 representing the increase in rate of their Representation and Transportation Allowance.

The order came shortly after COA directed the officials of Samboan to make the same refund, which totaled P209,160.

In its annual report, COA said the increase in RATA was granted even if it already exceeded the 55 percent personal services limitation allowed by Local Budget No. 84, dated April 13, 2007.

Paragraph 3 of Local Budget No. 84 stated that the grant of the revised rates is subject to the 45 percent or 55 percent limit on allowable personal services expenditures, as mandated under Section 325 (a) of Republic Act 7160 or the Local Government Code of 1991.

COA said the town’s supplemental budget number two shows the municipal council has approved and made the increase operative even if the endorsement from the provincial board dated January 28, 2008, stated that the increase should be subject to the conditions laid down by the Provincial Finance Committee.

In paragraph four of said endorsement, RATA appropriation shall not exceed the rates for a fifth class municipality and must strictly conform to the existing guidelines under Local Budget No. 84.

However, COA found out that Santander’s revised RATA rates were claimed by municipal officials from April to December 2007 even if the LGU already exceeded the PS limitation.

COA said that while RATA was increased in accordance with the prescribed rates for a fifth class municipality, the payment should have been deferred until such time that the PS cap is observed.

An Audit Observation Memorandum was issued to the municipal government on February 27, 2008 but no written reply has been received, COA noted.

“The concerned officials should be required to refund the excess payment of their RATA,” COA said, adding, that the municipal government should strictly observe the provision cited in Local Budget No. 84 and should be more prudent in releasing additional personnel benefits.

Meanwhile, COA also found out that an annual inventory of property, plant and equipment worth P18,201,230.15 was not conducted and adequate property records were not maintained.

The report said that as of December 31, 2007, the municipal government has not submitted an inventory to the auditor since no physical inventory has been made by the latter, which is reportedly violative of COA Circular 92-386, which provides that the local chief executive shall require an annual physical inventory of all supplies of property of LGU’s by December 31 of each year.

COA also found out that no one has been designated custodian of government properties, as well as in charge of maintenance of subsidiary records and that there was no adequate property records maintained, as required by existing regulations.

COA added that various unserviceable vehicles were left to rot within the municipal hall premises as “inventory reports for unserviceable/obsolete properties” for reclassification to “other assets” were not prepared.

“This observation had been included in previous year’s reports and so far the management’s action was the creation of an inventory committee but no physical count was conducted. They reasoned out that they were not able to devote some time for the physical count but promised to do it as soon as possible,” COA said. — Mitchelle L. Palaubsanon/JMO