CEBU, Philippines - Officials and employees of the Municipality of Consolacion must return to the government more than P1 million in excess salary granted to them last year, the Commission on Audit (COA) said.
State auditors said the P1,755,400 given to the 94 employees and municipal officials was an overpayment and a violation of Local Budget Circular No. 2009-92 dated September 3, 2009.
COA calls the disbursement as “irregular”.
Municipal Mayor Teresa Alegado already promised to the COA that the officials and employees will refund the excess payment of salaries but on installment basis payment, which is payable in three years.
Section 6.1 of the circular provides that the new salary rates shall be in accordance with the first tranche monthly salary schedule for local government personnel effective January 1, 2010, corresponding to the LGU level and income class.
The Municipality of Consolacion is a first class municipality.
State auditors pointed out that the local chief executives will be held personally liable for the payment of salary adjustment, which is not in accordance with the provisions of the circular without prejudice, however, to the refund of any excess payment by the personnel concerned.
The Provincial Finance Committee commented that the appropriation for compensation items intended for the increase in salary and wage rates shall be implemented in accordance with rules and regulations prescribed under DBM Local Budget Circular.
Upon the verification of the state auditors on the paid payrolls of the employees and officials, it was found out that they were paid higher that what is prescribed in the first tranche of the modified salary schedule for local government personnel.
“These officials and employees were paid based on the first tranche monthly salary schedule for local government personnel in First Class Provinces, resulting in an overpayment of P1, 755, 400,” the report read.
Based on the payroll, Alegado and former mayor Avelino Gungob has an overpayment in the amount of P22, 152 while the members of the municipal council has an overpayment of P18, 798. –(FREEMAN)