Thursday, August 28, 2008
COA wants 2 towns to refund bonuses
MORE than P7 million in “extra cash gifts” given to officials and employees of two towns in Cebu Province last year were illegal and should be refunded, state auditors said.
In its annual report, the Commission on Audit (COA) 7 said that close to P5 million in additional cash incentives to officials and employees of Minglanilla town, at P31,000 each, exceeded the limit on personal services for a fourth-class municipality.
COA 7 also questioned the release of more than P2 million by the Barili town government as incentives to its employees, saying the allocation surpassed the 45-percent limit on personal services for a third-class municipality.
“All officials and employees who received such benefits should refund the amount immediately,” state auditors said of Minglanilla’s additional incentives.
But the Minglanilla town government defended the additional incentives, saying the supposed “excess” was computed and included in its appropriations for 2007.
In Barili, municipal employees received last Dec. 19, 2007 more than P2 million in additional cash incentives.
Memo circular
Auditors said the additional incentives violated COA’s memo-circular.
“All officials and employers concerned who received such benefits ranging from P7,500 to P25,000 should refund that amount immediately,” auditors said.
The town government, replying to the audit report, explained that the excess in additional benefits stemmed from:
l the continued implementation of the Salary Standardization Law, which includes the grant of step increments;
l the creation of mandatory positions in compliance with the Local Government Code of 1991;
l the devolution of services and personnel under the agriculture, health and social welfare departments, which cost the town P7,608,472.
Officials pointed out that municipalities are mandated to grant benefits such as subsistence, laundry allowances and hazard pay for devolved health personnel.
Auditors, however, asked the town’s budget officer to coordinate with the Provincial Budget Office before granting the release of additional benefits. (GMD)
For Bisaya stories from Cebu. Click here. (August 28, 2008 issue)
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