City accountant told: Enforce P31M disallowance

By Gerome Dalipe IV

The Iloilo City Government has yet to enforce several notices of disallowance the Commission on Audit (COA) Region 6 has issued against several city officials and employees in previous years.

In its 2022 annual audit report, the state auditors said the City’s Accounting Department has not yet enforced COA’s order of execution for various notices of disallowance totaling P31.19 million.

Two factors caused the delay in the enforcement of the disallowance notices, the City Government told the state auditors.

First, the city accountant was not furnished with a copy of the Supreme Court decision relating to the disallowance issue. Likewise, some accountable officers were no longer connected with the Iloilo City Government

Under Section 7.1 of the COA Circular No. 2009-006, the agency’s head is mandated to ensure the settlement of disallowances and charges is made within the prescribed period.

He is also tasked to enforce the COA Order of Execution (COE) by requiring the withholding of salaries or other compensation due to the person liable to the disallowance or charge.

A review of the notices of disallowance with COE and Supreme Court decisions showed an outstanding balance of PhP31.191 million, the auditors said.

After the audit team referred such observations to the Accounting Division, the person in charge confirmed that the Supreme Court decision in 2021 was not enforced because they were not furnished with a copy of such a ruling. Thus, the focal person told the auditors that they did not have a basis for their actions.

The high tribunal, in its en banc decision dated Sept. 28, 2021, dismissed the petition of the City Government, which questioned the state auditors’ decision disallowing the payment of productivity bonus to the employees of the City Hall amounting to P46.42 million in 2009.

In affirming COA’s decision disallowing such payment, the high tribunal held that “by disallowing the PEI, the COA did not invalidate the legislative act of the Sangguniang Panlungsod, rather, it only fulfilled its duty as the guardian of public funds.”

The copy of the court decision was reportedly furnished to the City Legal Office but not to the Accounting Division.

Likewise, the focal person in the accounting division told auditors that they withheld the disallowed amount from the last salaries and terminal benefits of those who retired as well as those who were issued such notices.

The focal person for the city’s accounting division assured the auditors they would exhaust all efforts to contact the accountable persons and enforce the SC decision and disallowance notices.

The city accountant also informed the auditors that about P835,000 of the outstanding disallowed amount was settled and that the local finance committee has already discussed how to proceed with the settlement.

The focal person also said they would coordinate with the Human Resource Management and Development Office to contact the persons liable who were no longer connected with the City Government.

Otherwise, the accounting office will enforce the solidarity liability against other persons liable who are in active service status, according to the high tribunal’s ruling.