BY GEROME DALIPE IV
ILOILO City – The Commission on Audit (COA) ordered 12 employees of the Iloilo State University of Fisheries and Technology (ISUFST) to refund a total of P166,695.10 that they received as part of the 2021 performance-based bonus (PBB).
This action stemmed from an audit that revealed the employees were granted the bonus despite not meeting all the eligibility requirements outlined in Section 6.15 of the Department of Budget and Management (DBM) Memorandum Circular No. 2021-1, dated June 3, 2021.
The disbursement of the PBB to these employees violated established eligibility criteria, leading to the irregular allocation of government funds, according to state auditors.
As a result, the affected employees are required to return the funds as per COA’s audit findings, reinforcing the importance of adhering strictly to government policies regarding bonuses and the proper utilization of public funds.
The DBM Circular specifies that employees must meet performance and eligibility criteria to qualify for the PBB.
However, the 12 employees failed to meet one of the key requirements: the liquidation of cash advances within the prescribed period, as stipulated in COA Circulars 97-002 and 2009-002.
Their delays in liquidating the cash advances ranged from five to 148 days, with two employees failing to liquidate by the December 31, 2021 deadline. Consequently, they were ineligible for the 2021 PBB.
In the post-audit review for 2023, the auditors found that these 12 employees were granted the PBB despite their failure to liquidate cash advances on time.
Such, according to COA, violated the provisions of DBM Memorandum Circular No. 2021-1, which clearly states that employees who do not meet the cash advance liquidation requirement are not entitled to the PBB.
Moreover, COA’s report highlighted that the ISUFST management failed to thoroughly check the list of employees with outstanding unliquidated cash advances from 2021. This oversight led to the inclusion of ineligible employees in the payroll, who were subsequently paid the PBB despite not fulfilling the necessary eligibility conditions.
School accountants acknowledged that they were unaware of the eligibility guidelines for the PBB, particularly the requirements related to unliquidated cash advances, which contributed to the improper disbursement of government funds.
As a result of this lapse, the disbursement of the PBB to these employees has been disallowed in the audit.
COA formally documented the findings in audit observation memoranda issued to the university, emphasizing the need for stringent adherence to the guidelines governing PBB disbursements to prevent similar violations in the future.
In its audit report, COA instructed ISUFST to require the 12 employees to refund the total amount of P166,695.10, due to their failure to meet the eligibility requirements.
COA also reminded the university to grant the PBB only to those who fulfill all the criteria outlined in DBM Memorandum Circular No. 2021-1, ensuring compliance with the rules and regulations./PN
