The Commission on Audit (COA) has ordered Cebu City officials and employees to refund the P84.48 million in financial calamity assistance (FCA) they received in 2013 because the disbursement of the fund was "not compliant with laws, rules, and regulations."
The order was issued as COA denied the petition for review filed by Cebu City Mayor Michael L. Rama and officer-in-charge City Budget Officer Marietta L. Gumia. COA affirmed the Notice of Disallowance (ND) Nos. 14-001-101(13) to 14-130-101(13) dated June 23, 2014.
"The payees are required to refund the amounts they each received and the approving and certifying officials remain to be solidary liable under the NDs," the dispositive portion of the COA ruling said.
Cebu City was affected by the 7.2 magnitude earthquake and typhoon Yolanda on Oct. 15, 2013 and Nov. 8, 2013, respectively, which prompted the Sangguniang Panlungsod (SP) to approve Resolution No. 13-1409-2013 dated Dec. 18, 2013 and Resolution Nos. 13-446-2013 and 13-1447-2013 both dated Dec. 19, 2013.
The first resolution approved the calamity assistance (CA) amounting to P20,000 to local officials and employees to hasten their recovery from property losses or damages, while the latter resolutions approved the disbursement of P84,480,000, the total amount of FCA.
But on post-audit, the COA Regional Office VII issued Notice of Disallowances (NDs) in the total amount of P84,480,000 due to several reasons, one of which was that the payment of P20,000 FCA in cash is not in conformity with the provisions of COA Circular No. 97-002.
The circular states that CAs should not exceed P15,000 for each transaction and that the CAs should be equal to the net amount of the payroll of the pay period.
At the same time, Section 321 of Republic Act No. 7160 does not include the grant of FCA to government employees as among the expenses that may be considered for the enactment of a supplemental budget, even in times of a public calamity, COA said.
The COA also said that the grant of the FCA was not sourced from the Local Disaster Risk Reduction and Management Fund (LDRRMF) or Calamity Fund but was instead charged against the appropriation of the Office of the City Administrator and was recorded as donations.
"The grant of FCA is not considered as payment of supplies, materials, or services, and its purpose is not to prevent imminent danger to or loss of life or property. Moreover, it is also worth emphasizing that a considerable period of time has elapsed after the calamities occured when the FCA was paid on Dec. 23, 2013," the COA stressed.
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