The Commission on Audit (COA) has questioned the grant of P452,000 in productivity incentive benefit and communication allowances by the Lemery town in Iloilo to its officials and employees "despite the absence of legal basis."
In its 2023 annual audit report, the COA said the expenditure by the municipality "is considered as irregular disbursement of government funds."
In questioning the disbursement, the COA cited Item 9 of Civil Service Commission - Department of Budget and Management (CSC-DBM) Joint Circular No. 1, series of 2012 dated Sept. 3, 2012 which stressed that "the grant of the Productivity Incentive Benefit (PIB) shall be discontinued beginning Fiscal Year 2015."
However, when Lemery's 2023 transactions were audited, COA auditors found that every official and employee received P2,000 PIB or a total of P208,000.
It also said the municipality likwise shouldered the mobile load allowance of each department head and member of the Sangguniang Bayan, which totalled to P244,000 or P1,000 per month.
When questioned about these transactions, the COA said that the town's accountant told the audit team that it has been the practice of the municipality to grant its officers and employees such incentives and allowances annually or monthly.
It pointed out that the incentive and allowance are not among the standard and special-purpose allowances and benefits provided in the Total Compensation Framework established in Republic Act No. 11466, the Salary Standardization Law of 2019.
In the case of the the expenses for mobile loads, the COA said that since the payment was given directly to the department head in the form of monthly allowance, it is considered as an additional benefit granted to the employee concerned.
The COA then asked the officials of Lemery town to discontinue the grant of Productivity Incentive Allowance/Benefit and communication allowance to its officers and employees.
"Henceforth, we recommended and the Municipal Mayor and the Sangguniang Bayan agreed to ensure that the payment of allowances, incentives, and other benefits to its officers and employees are expressly provided by law, and other statutory authority, and the rules and regulations promulgated by competent authority to avoid incurrence of irregular expenditures of government funds," COA's audit report stated.