Unnecessary expenses incurred for meals, snacks, and venue rentals – ₱1,438,080.00
10. The City Government incurred costs for meals and snacks served during the
conduct of regular and administrative meetings, as well as venue rentals in
relation thereto amounting to ₱1,438,080.00, and inappropriately charged the
same to Other Supplies and Materials Expenses, Food Supplies Expenses, and
Rent Expenses contrary to COA Circular No. 2012-003, dated October 29, 2012,
resulting in unnecessary expenditures.
10.1 As defined under Section 4.1 of COA Circular No. 2012-003 dated October 29,
2012, Unnecessary expenditures pertain to expenditures that could not pass the test
of prudence or the diligence of a good father of a family. An expenditure that is
not essential or that can be dispensed without loss or damage to property is
considered unnecessary. The mission and thrusts of the agency incurring the
expenditures must be considered in determining whether or not an expenditure is
necessary.
10.2 Moreover, Section 325(h) of RA No. 7160 provides for the limitations for
discretionary funds (now Extraordinary and Miscellaneous Expenses) where the
annual appropriations for discretionary purposes of the local chief executive shall
not exceed two percent of the actual receipts derived from the basic real property
tax in the next preceding calendar year.
10.3 In CY 2024, the City Government of Bayawan incurred ₱1,438,080.00 for venue
rental, meals, and snacks during regular and administrative meetings of officials
and employees, as well as budget hearings, summarized as follows:
Particulars Amount
Meals and Snacks ₱ 1,001,480.00
Venue Rental 436,600.00
Total ₱ 1,438,080.00
10.4 It was observed that meals and snacks were charged to Other Supplies and
Materials Expenses and Food Supplies Expenses, and the rentals of the venue for
these meetings were charged to Rent Expenses.
10.5 It is emphasized that meetings are part of the regular functions of the officials and
employees concerned. Therefore, the costs of meals and snacks served during said
meetings could have been shouldered by the concerned officials, utilizing the
extent of their respective representation allowances, or the City Mayor’s
appropriations for Extraordinary and Miscellaneous Expenses (EME).
10.6 Records show that in CY 2023, the City collected a total of ₱11,998,495.83 from
real property tax, two percent of which amounted to ₱239,969.92. The City
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