14.5 It was also noted that the conduct of meetings, hearings, social pension payouts,
courtesy calls, and similar events is part of the regular duties and responsibilities
of government officials and employees. Thus, providing meals and snacks during
such activities should not be viewed as an essential expense for the agency.
Instead, such costs could have been charged to the officials’ Representation
Allowances or included within the allowable EME, had it not already exceeded
the legal ceiling.
14.6 Given the circumstances, the expenses for meals and snacks are deemed
unnecessary. Potential cash savings could have been directed toward essential
public services and amenities for public welfare. Moreover, the misclassification
of these expenditures, compounded by the breach of the statutory limit for EME,
distorts the financial reports, reduces transparency and accountability, and
undermines the proper exercise of fiscal discipline as mandated by law and audit
guidelines.
14.7 We recommended and Management agreed to, henceforth, ensure that
annual appropriations and disbursements for discretionary purposes or
those relating to Extraordinary and Miscellaneous Expenses do not exceed
the statutory threshold as provided in Section 325(h) of the RA No. 7160.
14.8 We further recommended and Management agreed that meals and snacks
served during regular and administrative meetings of local officials and
employees be charged to the appropriations for EME, to the extent of its
threshold, and representation allowances of officials concerned.
Summary of Total Suspensions, Disallowances, and Charges
15. There were no outstanding Charges as at year end. However, the Notices of Suspensions
and Disallowances showed the following balance as of December 31, 2024:
Beginning Issued this Period Ending Balance
Particulars Balance (1/1/2024 to 12/31/2024) (12/31/2024)
(1/1/2024) ND NSSDC
Suspensions ₱13,983,906.40 0.00 0.00 ₱13,983,906.40
Disallowances 2,312,910.00 0.00 0.00 2,312,910.00
15.1 This ending balance pertains to audit suspensions and disallowances issued and
received in the following years:
Balance as of
Years Issued Transaction Year Remarks
12/31/2024
Notice of Suspension (NS)
2013 ₱ 70,000.00 2013 For issuance of
2014 1,706,000.00 2013 disallowance
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