8.12. We recommended that the CBO, henceforth, charge obligations for
communication expenses to the appropriations for Telephone Expenses in
accordance with DBM Circular No. 2024-2.
8.13. We likewise recommended that the CBO, together with the approving officers,
refund the overdraft totaling ₱301,229.28 upon issuance of the Notice of
Disallowance by the Audit Team, and henceforth, ensure that funds are
available for the planned expenditures in accordance with P.D. No. 1445.
8.14. The City Mayor had coordinated with the CBO, and the City has fully complied with
DBM Circular No. 2024-2. As to the long-standing practice of charging the said
expense to Office Supplies Expenses, the CBO relied on past SP Resolutions
expressly authorizing the same. As such, the CBO asserted that it was done in good
faith and would like to request for a different solution for the said overdraft.
8.15. We maintain our stand that the charging of the cellcard expenses to the appropriations
for Office Supplies Expense is bereft of legal basis and cannot, therefore, be allowed
in audit.
Transportation allowances paid to Office Heads with assigned vehicle - ₱341,381.25
9. Transportation allowances totaling ₱341,381.25 were paid to four Office Heads
despite being assigned with government vehicle(s), contrary to DBM Local Budget
Circular (LBC) No. 103 and COA Circular No. 2012-003, thus, rendering the
payments illegal. Moreover, several vehicles were assigned to the same employee
which is considered excessive and detrimental to the economical use of government
funds and property.
9.1. DBM LBC No. 103 dated May 15, 2013, provides the amended Rules and
Regulations on the Grant of Representation and Transportation Allowances. Section
8.2.1 thereof specifically provides that “Those who are assigned or who use
government motor transportation shall no longer be entitled to the TA, but only
to the commutable RA for the month.” (Emphasis ours.)
9.2. Further, COA Circular No. 2012-003 dated October 29, 2012, provides the Updated
Guidelines for the Prevention and Disallowance of Irregular, Unnecessary,
Excessive, Extravagant, and Unconscionable Expenditures. Enumerated in the cases
that are considered “Illegal” expenditures or uses of government funds and property
in Annex B thereof is the payment of transportation allowance, viz.:
3.13 Payment of transportation allowance paid to officials who are assigned
or presently use government motor vehicles [Sec. 45, R.A. No. 10155
(General Appropriations Act 2012)]. Similarly, grant of gasoline
allowance or reimbursement of gasoline expenses to officials who are
receiving transportation allowance is also considered illegal.
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