Designation Period Amount
Architect I August 1-15, 2024 ₱ 10,921.65
Engineer I February 1-29, 2024 34,407.12
Computer Maintenance Tech. January 2 to February 29, 2024 34,198.00
Total ₱ 79,526.77
17.11 This practice is inconsistent with both the IPSAS and Section 4.0 of NDRRMC,
DILG, DBM, and CSC Joint Memorandum Circular No. 2014-1 (dated April 4,
2014), which specifies that only personal services and other maintenance and
operating expenses related to the implementation of DRRM initiatives may be
charged to the LDRRMF.
17.12 The activities performed by the COS personnel, which are administrative in
nature to support the operation of the Provincial Engineering Office (PEO) and
the Bids and Awards Committee (BAC), do not directly contribute to the
construction or development of PPE. According to paragraph 35 of IPSAS No.
17, the related expenses of incidental operations are not considered part of the
cost of an item of the PPE, to quote:
“ Some operations occur in connection with the construction or
development of an item of property, plant, and equipment, but
are not necessary to bring the item to the location and condition
necessary for it to be capable of operating in the manner
intended by management. These incidental operations may
occur before or during the construction or development
activities. x x x. Because incidental operations are not
necessary to bring an item to the location and condition
necessary for it to be capable of operating in the manner
intended by management, the revenue and related expenses of
incidental operations are recognized in surplus or deficit, and
included in their respective classifications of revenue and
expense.”
17.13 The law treats LDRRMF as a specific fund intended only for a specific purpose.
Charging the aforementioned salaries and wages of COS personnel, which are
considered administrative, maintenance, and support services, reduces the funds
available for disaster risk reduction and management purposes, defeating the
primary purpose for which the fund was established.
17.14 We recommended and Management agreed to stop charging the wages of
COS personnel, which are administrative in nature, to the 70% LDRRMF.
Furthermore, we recommended and Management agreed to ensure that the
services rendered by COS personnel align with their contractual duties and
responsibilities to address the inconsistencies noted in their
accomplishments.
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