COA orders LLDA to return P3.67M in unauthorized bonuses

The Commission on Audit has ordered the Laguna Lake Development Authority (LLDA) to return to the government P3.687 million in bonuses given to its employees for its anniversary, saying it had no authority to give such.

“The grant by LLDA of a Corporate Anniversary Package of P3.687 million in its 44th Anniversary is without proper authority,” the COA said in its report released last week.

“We recommended that Management cause the refund by the recipients of the Corporate Anniversary Package which was granted in violation of Administrative Order No. 263 and National Budget Circular No. 452,” it added.

The COA said based on Administrative Order No. 263 and the National Budget Circular No. 452, an Anniversary Bonus by a government entity can be released “only on its milestone year, which refers to the 15th Anniversary and to every fifth year thereafter.”

However, 2013 was the LLDA's 44th anniversary, and therefore not a landmark year, the COA said.

“LLDA, pursuant to LLDA Board Resolution No. 452, granted Corporate Anniversary Package to all its qualified officials and employees in CY 2013, the agency’s 44th founding anniversary, a none milestone year, " it said.

Additionally, the COA found that the anniversary package issued without basis was sourced from miscellaneous funds, as opposed to personal services, which should cover all legal bonuses.

“We have noted that the granted Corporate Anniversary Package was charged to 'Miscellaneous Expenses' of the Agency’s Corporate Operating Budget for CY 2013 for 'Maintenance and Other Operating Expenses (MOOE)' instead of charging the same to “Personal Services”, an indication that no funds are available for such benefits," the report said.

However, it seemed that the LLDA itself was aware that the bonus given to its employees could be disallowed.

“We also noted that the Disbursement Voucher pertaining to the grant is supported by a duly notarized Deed of Undertaking by the LLDA officials and employees to refund the amount received by them in case the same is disallowed in audit,” the COA report said.

In the same report, the COA said the LLDA stood by the legality  of the bonus, which was released to ease the financial burdens of those affected by heavy monsoon rains.

“The grant of Corporate Anniversary Package charged against the Miscellaneous Expenses for CY 2013 was made by way of a reward for the collective performance in attaining the Agency’s mandate and improved fiscal revenue stream. It was made at the slightest feeling to alleviate the finances of its employees who were affected by the Southwest Monsoon,” the COA report quoted the LLDA as saying.

However, the COA said it will still require the LLDA to return the unauthorized bonuses.

“We stand by our opinion that the anniversary bonus granted other than during the agency’s milestone year is without legal basis. Thus, we will be issuing a Notice of Disallowance for said expenditure,” it said. —KBK, GMA News