The Commission on Audit (COA) has affirmed the P13.816 million notice of disallowance (ND) it issued against the University of Rizal System (URS) which used its Special Trust Fund (STF) in the payment of economic incentives to its employees.
The ND was issued on Feb. 20, 2014 on the payment of incentives to all URS employees under the Program on Awards and Incentives for Service Excellence (PRAISE).
The COA audit team found that Board of Regents’ (BOR) Resolution No. 044-417-13 dated Sept. 25, 2013, which authorized the use of the STF, was contrary to the rules provided under Civil Service Commission (CSC) Memorandum Circular (MC) No. 1 dated Jan. 26, 2001.
The team said that funds for monetary awards should come from the monetary savings generated from PRAISE programs or activities, and should not exceed 20 percent of the savings.
The COA said that those liable for the ND are Commission on Higher Education (CHED) Commissioner Nona S. Ricafort, Senator Pia Cayetano, House Committee on Higher and Technical Education Chair Roman T. Romulo, National Economic Development Authority (NEDA) Region IV-A Director Agnes M. Espinas, Department of Science and Technology (DOST) Region IV-A Director Alexander R. Madrigal, and several officials and employees of the URS.
Dr. Marita R. Canapi, President of URS, filed an appeal and argued that the BOR is authorized to grant the disallowed benefits pursuant to Republic Act No. 9157, the URS Charter. She added that the members of the BOR and the URS officials enjoy the presumption of regularity in the performance of their functions.
However, the COA found her arguments unmeritorious. "From the foregoing, it is clear that monetary awards should be charged against the monetary savings generated from the suggestions, inventions, and superior accomplishments of university personnel, but not to exceed 20 percent of said savings," it said.
"Contrary to the CSC MC, the payment of the Economic Incentives in this case was charged against the internally generated income of the university for calendar year 2013," it added.
It held the approving and certifying officers solidarily liable for the net disallowance as it denied the Petition for Review of Canapi and affirmed the ND No. 2013-002 (164) dated Feb. 20, 2014.
TAGS: #COA #URS #Notice of Disallowance