MANILA, Philippines - Officials and employees of the Laguna Lake Development Authority (LLDA) have been ordered to return some P3.7 million in bonuses they received during their anniversary in 2013.
The Commission on Audit (COA) said the grant of the ”corporate anniversary package” during the agency’s 44th anniversary was not authorized.
“We will be issuing a notice of disallowance for said expenditure,” state auditors said.
A COA report said Administrative Order 263 issued on March 28, 1996 and National Budget Circular 452 dated May 20, 1996 authorized the grant of anniversary bonus by a government entity only during its milestone year, which refers to the 15th anniversary and every fifth year thereafter.
The audit team said the anniversary package was charged to miscellaneous expenses of the LLDA’s budget for 2013 and not to personal services, “an indication that no funds are available for such benefits.”
The COA report said the LLDA was aware that the grant of the bonus might be questioned since the disbursement voucher was supported by a notarized deed of undertaking of the recipients that they would refund the amount if it would be disallowed in audit.
The LLDA management argued that the agency’s board could fix the compensation of its officials aside from its power to approve its annual or supplemental budgets.
“It was made...to alleviate the financial difficulties of employees who were affected by the southwest monsoon,” it added.