90 workers in Naga had unlawful salary

STATE auditors revealed that about 90 employees of the Naga City Government received net take-home pay below the statutory net rate of P3,000, says the City’s annual audit report.

The Commission on Audit (COA) also questioned the City Government for its failure to liquidate more than P9 million worth of cash advances to 148 officers and employees, resulting to non-recognition and non-recording of expenses of cash advances in prior and current years.

In their annual audit report, the COA noted that the City Government of Naga failed to comply with Section 43 of the General Provisions of Republic Act 10145, entitled the General Appropriations Act of 2011, when some of its employees received take home pays below the statutory net pay of P3, 000 per month.

The law provides that deductions from salaries, emoluments or other benefits ensued to any government employee chargeable against the appropriation for personal services may be allowed, such as government-mandated deductions, deductions from banks and mutual benefit associations, and cooperatives and association organized by government employees.

The said provision also provides that deductions shall not reduce the employee’s monthly net take home pay to an amount lower than P3,000 after all authorized deductions.

However, with some city employees not able to take the prescribed take-home pay, it defeats the general intent of RA 10145 to boost employees’ morale and self-esteem in order to promote efficiency and effectiveness in government service, the state auditors noted.

They revealed that for March to May 2011, there were employees that received below the P3,000 prescribed net pay.

The auditing team recommended that the city accountant should strictly enforce the provisions in the said law pertaining to net take-home pay to promote an efficient and effective public service by ensuring that employee has enough to support for their daily needs until the next payday.

Job order

In a separate interview yesterday, Naga City Mayor Valdemar Chiong said that while they admit that 90 of their employees are not receiving the prescribed pay based on law, it only happened because most these employees cited are only receiving honorariums, which includes job order employees.

Chiong added that job order employees and employees receiving honorarium are not subject to the mandatory deductions as they observe a no employer/employee relationship.

The state auditors also chided the Naga City Government for failing to liquidate P9.2 million worth of cash advances from 148 city employees and officers in 2011.

Auditors noted that the City violated Section 4.1.3 of COA Circular 97-002, which governs the release and recording of cash advances.

They also noted that from 2000 to 2011, a number of officers and employees failed to liquidate their cash advances.

These cash advances were reportedly granted to city officials and employees for payment of traveling expenses, registration fees for seminars and trainings, expenses for various city-wide activities and intelligence fund expenses of the city mayor.

In fact, this was not the first time that the Naga City Government was reminded by COA to liquidate the cash advances it gave its employees.

Reminder

In the City’s 2010 annual audit report, state auditors reminded the City Government to liquidate about P5.7 million in cash advances. Based on the report, it has yet to see implementation.

Chiong said that as of July 31 this year, almost half of those who failed to liquidate their cash advances have already complied. Letters were sent to the other half regarding their liquidation.

He said most of those who were included in the list were employees in National Government agencies.

Auditors also noted that out of 13 audit recommendations from the previous years, two were fully implemented, five were partially implemented and six were not implemented.