COA affirms P16.8-M disallowance spent by Tagaytay Water District for employees
The Commission on Audit (COA) has affirmed the P16.8 million notice of disallowance (ND) it issued against the Tagaytay City Water District (TCWD) which used the fund in 2011 and 2012 for incentives pay to its employees.
COA’s Regional Office IV-A issued the ND on May 23, 2014 on the payment of incentives based on the Program on Awards and Incentives for Service Excellence (PRAISE).
Its audit team found that the payment of incentives was contrary to Section 12 of Republic Act No. 6758, Section 7 of Administrative Order No. 161 series of 1994 and paragraph 4.5 of Department of Budget and Management (DBM) Circular No. 16.
TCWD General Manager Ruth E. Ambion filed a Petition for Review. She argued that the Civil Service Commission (CSC) is constitutionally mandated to promote morale, efficiency, integrity, responsiveness, and courtesy in civil service. Since the CSC approved the incentives, the TCWD employees received it in good faith, Ambion said.
But the COA, in its decision, said that Ambion's petition is without merit as the grant of incentives needs compliance with certain parameters.
It said the TCWD did not submit proof that its employees made suggestions, inventions, and innovations which contributed to the efficiency, economy, and productivity of the TCWD.
"These are indications that no actual nominations and selections had happened. For non-compliance with the set parameters, the payment of incentive under the TCWD PRAISE is considered an irregular transaction," the COA stressed.
The COA pointed out that the obligation to refund the illegal payment of incentives falls upon those who approved and those who received the funds.
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