Case Digest (G.R. No. 244336)
Facts:
Social Security System v. Commission on Audit, G.R. No. 244336, October 06, 2020, Supreme Court En Banc, Lazaro-Javier, J., writing for the Court.Petitioner Social Security System (SSS) paid Collective Negotiation Agreement (CNA) incentives of P20,000.00 each to rank-and-file employees of its Western Mindanao Division for the years 2005–2008, totaling P9,333,319.66. The SSS maintained the grant was authorized by a Supplemental CNA allegedly embodied in Social Security Commission (SSC) Resolution No. 183 and premised its defense on prior consultations and alleged past SSC practice.
On March 26, 2012, a COA State Auditor issued Notice of Disallowance No. 2012-03 for the total amount, finding multiple violations: the payments were not provided in the executed CNA for the covered years (violating DBM Budget Circular (BC) No. 2006-1, Sec. 5.1); SSS failed to meet targeted operating income in some years (breaching PSLMC Resolution No. 2, s. 2003, Sec. 3); accruals/excessive use of savings violated BC No. 2006-1 Sections 5.7 and 7.1; and the approving and certifying officers, together with payees, were identified as liable.
On appeal, the COA Regional Office rendered Decision No. 2013-29 (Nov. 26, 2013) affirming the disallowance, finding that SSC Resolution No. 183 did not exist, that the CNA for 2005–2008 contained no provision authorizing such incentives, and that several DBM circular provisions were violated (including Secs. 5.6.1, 5.7, and 6.1.3). Thereafter, the COA-Commission Proper initially dismissed SSS's petition for late filing in Decision No. 2015-045 (Feb. 23, 2015), but on reconsideration issued Decision No. 2018-305 (Mar. 15, 2018) resolving the petition on the merits and largely affirming the regional findings: Resolution No. 183 was nonexistent; the P20,000 pre-determination contravened DBM BC No. 2006-1; SSS failed to prove compliance with PSLMC Resolution No. 2 conditions; COA excused the passive recipients from refunding for lack of knowledge but held the approving/certifying officers solidarily liable.
Petitioner filed this Petition for Review on Certiorari under Rule 45 seeking nullification of COA-CP Decision No. 2018-305 insofar as it (a) affi...(Pro-only)
Issues:
- Did the Commission on Audit—Commission Proper gravely abuse its discretion when it affirmed the disallowance of the 2005–2008 CNA incentives paid to SSS-Western Mindanao Division employees?
- Are the approving and certifying officers liable to return the disallowed amounts, and are the employee recipients liable to return...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)