THE Commission on Audit (COA) regional office denied the appeal of the Cebu City Government on the notice of disallowance on the release of the P20,000 calamity assistance in 2013.
In a decision dated Sept. 23, COA Director IV Alicia Malquisto upheld the findings of the state auditors that the disbursement is irregular.
Malquisto said the disbursement of the funds for the calamity aid is not compliant with the laws and other rules and regulations on the release of public funds.
In the findings, COA found out that the distribution of the calamity assistance violates Section 321 of Republic Act (RA) 7160 or the Local Government Code since it does not include granting calamity assistance to government employees as expenses that may be considered for the enactment of a supplemental budget.
Under Section 321, all budgetary proposals should be included in the budget preparation and after the local chief executive has submitted the proposed budget to the City Council, no ordinance providing for a supplemental fund should be enacted.
This, except when supported by actual funds available or new revenue sources or when there is a calamity.
Regular
Earlier, the City pointed out that the release of the calamity assistance was regular because it was anchored on Resolution 12-1409-2013, which authorized the distribution of the aid to qualified employees of the City.
Two other approved measures, Ordinances 2379 and 2380, also allowed the funding of some P84 million calamity aid.
Although the Department of Budget and Management (DBM) declared the appropriation ordinance as operative in its entirety, it is still subject to conditions under Joint Memorandum Circular 2013-1, dated March 23, 2013, issued by the National Disaster Risk-Reduction Management Council, Department of Interior and Local Government and the DBM.
Malquisto said the condition was not followed by officials of the city.
Release
In 2013, former Mayor Michael Rama and with the approval of the City Council released the P20,000 calamity assistance to the qualified officials and employees of City Hall after a 7.2 magnitude earthquake and super typhoon Yolanda left tremendous damage in Cebu.
When sought for comment, City Attorney Joseph Bernaldez said they will file a petition for review before COA Central Office in Manila, particularly that the case involves city hall employees who received the aid.
COA earlier asked the accountable officers, including all those who received the calamity assistance, to refund the amount.