consequent damage to the same extent as if the transaction had been wholly
between private parties.”
13.5 It must be noted that COA Circular No. 2012-003, dated October 29, 2012 entitled
“Updated Guidelines for the Prevention and Disallowance of Irregular,
Unnecessary, Excessive, Extravagant, and Unconscionable Expenses,” cited the
abovementioned practice – entering into contracts without covering certificates of
availability of funds issued by the Chief Accountant – as an illegal expenditure. In
fact, GR Nos. 151373-74, dated November 17, 2005, in the case of Department of
Health vs. CVCAA, et al., emphasized that any contract entered into in the absence
of the aforementioned CAF shall be deemed void.
13.6 Despite the Municipal Treasurer’s certification as to availability of funds on the
face of the disbursement voucher, and the Municipal Budget Officer’s certification
as to existence of available appropriations on the face of the obligation request
form, it is still an essential condition for the Municipal Accountant to issue the
CAF, as he/she is required by law, to ascertain the existence of appropriations
therefor and the availability of funds to cover the proposed expenditure.
13.7 We recommended and Management agreed to, henceforth, secure the
Certificate of Availability of Funds (CAF) from the Municipal Accountant,
prior to entering into any contract and before making any disbursement or
obligations charged to any authorized appropriation, in accordance with
Section 86 of PD No. 1445.
Granting of 25% monetary incentives to enforcers of the Anti-Littering Ordinance
14. The Municipal Government, through its Resolution on the Integrated and
Ecological Solid Waste Management of Sta. Catalina, grants a monetary incentive
of 25 percent of penalties paid or collected to enforcers for implementing the Anti-
Littering Ordinance, which deviates from the Incentive Program provided in
Republic Act (RA) Nos. 9003 and 11898, thus prohibiting the attainment of the
Act's goal of promoting innovative environmental projects and processes and
potentially leading to the improper disposition of public funds.
14.1 Section 45 of RA 9003, as amended by RA 11898, stipulates the proper allocation
of funds for enforcing solid waste management policies, including but not limited
to the collection of fines for violations of the prohibited acts enumerated in the
same Act. An incentive program is established to encourage local government
units (LGUs), businesses, and private organizations—including obliged
enterprises, Producer Responsibility Organizations (PROs), and non-
governmental organizations (NGOs)—to develop or implement effective solid
waste management systems. This includes the recovery and reduction of plastic
product footprints or active participation in programs that promote these efforts.
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