QuestionsQuestions (COA CIRCULAR NO. 2013-003)
To ensure that all payments of allowances, incentives, and other benefits to government officials and employees in NGAs, LGUs, and GOCCs (and their subsidiaries) are based strictly on legal authority; payments without legal basis must be disallowed in COA audit.
Government officials and employees are entitled only to those expressly provided by law or other statutory authority and the rules and regulations issued by competent authority.
COA Auditors are directed to disallow in audit all such payments of allowances, incentives, and other fringe benefits that have no legal basis or do not strictly conform with the laws, rules, and regulations authorizing them.
It cites Section 39 of the General Provisions (2012 and 2013 GAAs) and corresponding sections in subsequent years’ GAAs as legal basis, with a rate of PHP 2,000.00 per month.
For LGUs, it notes that rates are provided in Local Budget Circular (LBC) No. 84 dated April 13, 2007, while the general basis for RATA is Section 45 of the applicable GAA General Provisions for the relevant years.
It cites DBM National Compensation Circular (NCC) No. 73 (Dec. 27, 1994), NCC No. 73-A (Mar. 1, 1995), and related DBM Circular Letters (Nos. 3-96, 2001-6, and 2002-3). The benefit is stated as PHP 2,500.00 or PHP 2,000.00 depending on the employee’s performance rating.
Legal bases include Section 40 of the applicable GAAs (2012 and 2013 and subsequent years) and DBM Budget Circular No. 2012-1 (Feb. 23, 2012). The stated rate is PHP 5,000.00 per year, which may vary.
It cites Section 7, Rule X of the Omnibus Rules of the CSC; DBM Department Order No. 92-10 (Oct. 1, 1992); and CSC Memorandum Circular No. 6, s. 2002. Amounts by milestone include: 10th year PHP 5,000; 15th year PHP 3,000; 20th year PHP 3,500; 25th year PHP 4,000; 30th year PHP 5,000; 35th year PHP 7,500; and 40th year PHP 10,000.
Domestic travels are based on Executive Orders Nos. 248 and 248-A (1995), as amended by E.O. No. 298 (2004). The circular states PHP 800.00 per day for travel outside the 50 km radius from Metro Manila or the official station, and PHP 400.00 per day for travel within the 50 km radius.
For foreign travel daily subsistence allowance, it lists Clothing Allowance as USD $400.00 but notes it is suspended under Office of the President Memorandum Circular No. 52 dated October 2, 2003.
Such allowances and benefits may be paid subject to prior approval of the Office of the President as required under PD No. 1597, and compliance with the President/DBM-approved policies and levels for allowances and fringe benefits.
Section 5 requires Presidential approval of allowances/honoraria/fringe benefits upon recommendation of the DBM Secretary and ongoing review of allowance policies/levels. Section 6 provides that agencies or employee groups exempted from OCPC coverage must still observe Presidential guidelines; they must report their position classification and compensation plans to the President through DBM.
It enjoins GOCCs covered by RA 10149 to comply strictly with Sections 10 and 23—especially limits on additional incentives and the determination of compensation/per diems/allowances by the GCG using EO 24 as reference.
The circular states that no incentives shall be granted unless the GOCC has fully paid all taxes for which it is liable and has declared and paid all dividends required under its charter or other laws.
The circular states that compensation/per diems/allowances/incentives of Board/Trustees shall be determined by the GCG using Executive Order No. 24 (Feb. 10, 2011) as reference. It also provides that directors/trustees are not entitled to retirement benefits as such directors/trustees.
After 15 days from publication in newspapers of general circulation (as provided in the circular’s Effectivity clause).