COA to Capitol: Refund excess of incentive

CEBU, Philippines - The Capitol has disbursed more than half of the allowable amount for the Productivity Enhancement Incentives to officials and employees amounting to P16.8 million last year.

Report of the Commission on Audit said that the grant of PEI to 1,619 officials and employees at P20,000 each or one month basic salary, whichever is higher, exceeded the maximum allowable amount of P10,000.

Budget Circular No. 2010-3 dated November 30, 2010 sets the guidelines on the grant of the PEI to government personnel for fiscal year 2010.

The Circular states that government personnel shall be entitled to the PEI at a maximum amount of P10,000 each.

Based on the average Provincial Government Service Departments/Offices Performance Rating of very satisfactory, the provincial government granted PEI to its officials and employees at the rate of P20,000 or one month basic salary, whichever is higher.

“This rate is evidently above the allowable ceiling and therefore contrary to the aforementioned regulation,” the audit report said.

Verification of payrolls disclosed that P32.9 million was disbursed for the subject incentive.

“Of the total amount, only P16,190,000 is allowable and the balance of P16,768,362.35 is the excess benefit granted to 1,619 officials and employees,” COA said.

Provincial Budget Officer Emmy Gingoyon explained that the provincial government has adhered to the pertinent guidelines on PEI.

Still, COA has a different conclusion on the matter contained in Opinion No. 2011-011 dated January 21, 2011.

“The Office of the General Counsel is of the view that the PEI, which may be granted to officials and employees of local government units must be subject to the P10,000 limitation,” it said.

COA asked the provincial government to require refund of the productivity enhancement benefit received by officials and employees in excess of that allowed by in Budget Circular No. 2010-3 and to adhere strictly to rules and regulations to avoid audit disallowances. (FREEMAN)