Moalboal told to refund cash bonuses

The Commission on Audit told Moalboal town officials and employees not only to refund the extra cash gift and benefits extended to them but also to refund the collective negotiation agreement bonus.

The COA, in its audit report on Moalboal’s operations in 2007, said the town gave extra cash gifts amounting to P1.248 million, way beyond what the town can afford.

Based on the computation, the agency had already exceeded the personal services limitation required for a fourth-class municipality, so it exceeded the 55 percent limitation for personal services, thus giving extra cash gifts was a violation of the Local Budget Memorandum No.54.

“All officials and employees concerned who received such benefit at P20,000 each should refund the amount immediately,” COA said, adding that approving officials should also explain why benefits were granted despite the fact that it had already exceeded its personal services limitations for the calendar year 2007.

The Moalboal municipal government also released collective negotiation agreement bonuses worth P900,000.

Under Budget Circular 2006-1 dated February 1, 2006, the CNA shall not be given upon signing and ratification of the CNA’s or supplements as this gives the CNA incentive the character of a CNA bonus.

A copy of the Certificate of Registration-CNA was signed by the town and the Association of Moalboal Municipal Employees effective January 2, 2007 to January 2, 2010.

Based on the certification, the start of effectivity was January 2, 2007, which the commission said that only savings generated after January 2, 2007 ascertained at the end of the year shall be source of the CNA incentive, which shall be paid at the following year, calendar year 2008.

The state auditors also revealed that no supporting documents were attached to the claims on the sources of funds from cost-cutting measures.  — Garry B. Lao/BRP