THE Commission on Audit (COA) has flagged the Cebu Provincial Government for releasing over P136 million in bonuses and incentives to officials and employees in 2024 without complete documentation, preventing auditors from verifying whether the payments complied with applicable laws and regulations.
In its report, state auditors flagged three disbursements: the Program on Awards and Incentives for Service Excellence (Praise) bonus amounting to P38.28 million; the Collective Negotiation Agreement (CNA) incentive totaling P31.93 million; and a compensation premium of P66.19 million to job order (JO) personnel.
All were found to have incomplete documentation or deficiencies in payment requirements. In 2024, the province was under the leadership of then governor Gwendolyn Garcia.
Praise bonus: P38.28 million
COA said the Capitol released P38.28 million in Praise bonuses to all regular and casual employees without key documentary requirements.
The payments were supported only by approved payrolls and lacked a resolution from the Praise Committee justifying the grant. Auditors also found no documents showing that the monetary awards were sourced from savings resulting from employees’ suggestions, inventions, or superior accomplishments, as required under Civil Service Commission (CSC) Resolution 010112.
Without these, COA said it could not confirm compliance with the CSC rule that limits monetary awards to no more than 20 percent of an agency’s verified savings.
During the exit conference, the Provincial Budget Officer said the bonuses were granted across the board and funded through savings from unfilled plantilla positions. However, auditors stressed that supporting documents were still lacking.
COA recommended that the Province submit a Praise Committee resolution, a report on the accomplishments that justified the bonus, and a computation of the savings that funded the payments.
CNA incentive: P31.93 million
State auditors also noticed deficiencies in the release of P31.93 million in CNA incentives to regular, casual, and elective officials.
While payrolls and certifications were submitted, auditors said the Capitol failed to provide proof that the employees’ organization’s CNA was registered with the CSC, as required under Department of Budget and Management (DBM) Budget Circular 2024-4.
There was also no copy of the CNA or its supplements showing that the incentive was authorized. The Province also did not submit proof that it had accomplished at least 75 percent of its 2024 targets by September 30 — a key eligibility requirement.
COA further found no records showing that the incentive was funded solely from savings under Maintenance and Other Operating Expenses, or that a committee created under PSLMC Resolution 2, s. 2022 had assessed eligibility and recommended approval. PSLMC stands for Public Sector Labor-Management Council.
Auditors recommended submitting the CNA registration certificate, a copy of the CNA, proof of target accomplishment, the Registry of Appropriations, Allotments and Obligations, the Statement of Appropriations, Allotments, Obligations, Disbursements, and Balances, and proof of submission of the annual report to the DBM.
Provincial Accountant Officer-in-Charge Janet Guaren informed COA that the required documents would be submitted for evaluation.
JO compensation premium: P66.19 million
The audit also flagged the P66.19 million in compensation premiums granted to JO personnel due to incomplete records and inconsistencies in payroll entries.
COA found that P27.96 million in payroll documents were labeled as Service Recognition Incentive, although JO workers are not entitled to SRI because they are not government employees.
During an exit conference, the provincial accountant's office admitted that the wrong certification was attached due to time constraints. COA did not state when this conference happened.
COA also noted that all JO workers received a uniform P8,000 premium, but no computation was submitted to show compliance with the 20 percent cap based on comparable government salary rates, as required under COA–DBM Joint Circular 2, s. 2020.
Auditors said the absence of individual computations, salary base and supporting documents made it impossible to determine whether the premiums were properly calculated.
COA recommended that the Province explain the discrepancy in the payroll certifications and submit detailed computations for each JO worker, including their salary rates, comparable government position rates, and proof of compliance with the 20-percent cap. (CDF)