The Commission on Audit has given provincial employees and officials of Surigao del Norte something to cheer about amid the recent devastation of super typhoon “Odette.”

In a recent ruling, the COA-Commission Proper (COA-CP) upheld the appeal of former governor Sol F. Matugas for the reconsideration of the Notice of Disallowance (ND) issued by the COA Regional Office XIII in connection with the distribution of a total P21, 294,500 in Productivity Enhancement Incentives (PEI) to provincial employees and officials in 2014.

The COA-RO XIII disallowed the disbursement as it noted that the amount distributed exceeded the P5,000 limit set by Executive Order No. 80 issued on July 20, 2012.

In the ruling released recently, the COA-CP ‘disapproved” the ND although it affirmed that the amount distributed as PEI exceeded that allowable by law.

Composed of Chairman Michael Aguinaldo and Commissioner Pondoc, the COA CP ruled that the ND should cover only P4,358,800.42, instead of P21,294,500.

Pursuant to Sangguniang Panlalawigan Resolution N o. 262 issued in 2014, qualified regular and casual employees were to receive P30,000 and P15,000 each, respectively.

Aside from Matugas, wife of incumbent Gov. Francisco Matugas, 16 other officials were held liable for authorizing the use of savings to pay the PEI. Among those held liable were then Vice Gov. Carlos Egay and 12 other members of the SP.

The former governor appealed the ND as she stressed that under the guidelines issued by the Department of Budget and Management on the grant of PEI, the distribution of the incentives was valid.

She added that regualr and casual employees received the PEI in good faith.

In upholding Matugas, the COA-CP cited the Philippine Congress Joint Resolution in 2009 providing for the grant of PEIs to be authorized by the president.

The COA-CP noted that the P5,000 limitation applies only to national government employees.

But with regards to local government units like the provincial government of Surigao del Norte, the grant of PEI is to be determined by the financial capability of the LGU.

“Therefore, the province has the discretion to grant PEI to its employees at the rate even beyond the amount of P5,000 each, provided that the local cost for PS (personnel services) for the fiscal year (FY) shall not exceed 45% of the total annual income from regular sources realized in the next FY,” the two-man panel explained.

As to the persons to be held liable, the body ruled that the approving and certifying officers “are solidarily liable to refund the amount disallowed while the payees are liable only to the extent of the amount they received.”

The panel said the disbursement to be disallowed should cover only P4,358,800.42 instead of P21,294,500.00, pointing out that the lower amount represents the excess in the personal services limitation of the province.