COA to Barili: Refund P1.3M in bonuses

CEBU, Philippines - The Commission on Audit (COA) has required the officials and employees of the municipality of Barili, Cebu to refund the amount of P1.3 million representing the excess of their Productivity Enhancement Incentive (PEI) in 2010.

The Sangguniang Bayan of Barili under Resolution No. 33-D13-2010 had authorized the grant of PEI at P20,000 each to rank and file personnel, and a 14th month pay in lieu of PEI for department heads and elective municipal officials.

The payment, COA said, has exceeded the P10,000-limitation prescribed under Budget Circular No. 2010-3 dated November 30, 2010 resulting in the excess or irregular disbursement of public funds, amounting to P1,322,423. The said circular provides the guidelines on the grant of the PEI to government personnel for the fiscal year 2010.

Section 5.0 sets the general limitation on the grant of PEI to government personnel at a maximum of P10,000, subject to service requirements.

In addition to the said limitation on the amount, Section 8 further provides that the grant of PEI to local government unit personnel shall be determined by the sanggunian subject to some conditions.

The PEI shall be charged against local government unit funds and the amount shall be determined by the sanggunian depending on the LGU’s financial capability.    The sanggunian shall ensure that the amount of the PEI and the corresponding expenditure therefore are reasonable and will not, in any way, adversely affect the delivery of services to the public.  

A total of P2, 482, 423 was disbursed for the purpose for the 116 employees of the municipality. (FREEMAN)