Refund CNA incentives, COA tells Dumanjug town officials, employees
CEBU, Philippines - The Commission on Audit has ordered all municipal officials and employees of Dumanjug to refund the unauthorized payment of collective negotiation agreement (CNA) incentives in 2010.
In its 2011 audit report, COA found that the P1.7 million CNA incentives granted to all town officials and employees at P16,000 each has violated Section 325 of the Republic Act 7160 or the Local Government Code because it already exceeded the 45-percent limit for personal services.
Section 325 of R.A. 7160 provides that, “The use of the provincial, city, and municipal funds shall be subject to the following limitations: (a) The total appropriations, whether annual or supplemental, for personal services of a local government unit for one (1) fiscal year shall not exceed forty-five percent (45%) in the case of 1st to 3rd class provinces, cities and municipalities, and fifty-five percent (55%) in the case of 4th class or lower, of the total annual income from regular sources realized in the next preceding fiscal year. . . . . . .â€
Based on the computation made by COA, the municipality has exceeded the limit for personal services by P2,553,727.66.
COA said that despite having exceeded the limitation, the management paid during the year a total of P1,728,059.33 CNA incentives resulting in irregular/unauthorized disbursement of public funds.
“We recommend that all officials and employees who collected the unauthorized payment of CNA incentive should refund the full amount unduly received,†the COA said. (FREEMAN)
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