Return allowances, Pampanga officials, employees asked

MANILA, Philippines - The Commission on Audit (COA) has called on officials and employees of the provincial government of Pampanga to return over P34.4 million in unauthorized financial benefits they received last year.

A COA report released yesterday said the grant of the allowance is considered “irregular, illegal, unnecessary and excessive” and a waste of public funds.

Records show that the provincial government gave its officials and employees a total of P34,166,690.52 last year as Cost of Living Allowance (COLA).

COA issued a notice of disallowance and called for a refund in February 2010 but only P263,821.80 of the amount has so far been returned.

State auditors said that under Section 3.1 of COA Circular 85-55-A, any expenditure incurred without adhering to established rules, regulations, procedural guidelines, policies, principles and practices is considered irregular.

“Thus the payment of allowances and other forms of additional compensation without proper authority is an irregular transaction/expenditure,” the audit team said.

“We recommend that management initiate appropriate action to recover the amount of COLA paid without legal basis and be more prudent in the disbursement of government funds in order to avoid wastage and loss,” state auditors added.

COA also urged provincial officials to adhere to the policy that “government funds and property should be fully protected and conserved, and that irregular, unnecessary, excessive or extravagant expenditure should be prevented.”