COA to budget officers: Follow rules in granting extra cash gifts

The regional office of the Commission on Audit has reminded the municipal budget officers to coordinate with their provincial budget officers before granting any additional benefit and extra cash gift to their officials and employees.

This after the COA discovered that several local government units continue to grant additional benefits and extra cash gifts even if they are no longer in accordance with laws, rules and regulations.

Section 325 of the Local Government Code provides that the total appropriations, whether annual or supplemental, for personal services of a LGU for one year shall not exceed 45 percent for first to third class provinces, cities and municipalities, and 55 percent for fourth or lower class of the total annual income from regular sources realized in its preceding fiscal year.

In its latest annual report, COA found out that Minglanilla and Barili extended cash gifts that exceeded the allowable 45 percent budget for personal services from their town’s annual budget in 2007.

This prompted the audit agency to ask the local officials and employees to immediately refund the additional benefit and extra cash gifts that they received.

For instance, officials and employees in Minglanilla received P31,000 each for their additional and extra cash gifts that totaled to P4.960 million while Barili extended from previous P7,500 to P25,000.

Minglanilla is now a fourth class municipality while Barili is a third class municipality.

In Samboan, the officials and employees have also been asked to refund the extra cash and gifts that they received in December last year amounting to P610,000 after they were found to have violated the Local Budget Memorandum for going beyond the 55 percent ceiling for “personal services.” The concerned officials and employees received P10,000 each.

Similarly, state auditors ordered Sibonga municipal government to make a P6 million refund. Of the amount, P2.4 million reportedly went to cash gifts alone.

In Moalboal, town employees and workers were also granted additional incentives amounting to P20,000 each.

COA also found out that the town of Lilo-an exceeded the allowable 45 percent for allowances set for a second-class municipality.   — Garry B. Lao/WAB