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COA Regional Office No. IX

DECISION NO. 2013-

` December , 2013

DECISION

PREFATORY STATEMENT

For revie an! re"ol#$ion b% $&i" Office '#r"#an$ $o R#le ( of $&e 200) Revi"e!

R#le" of *roce!#re" of $&i" Commi""ion, i" an A''eal of *abli$o S. *al#ca, +eneralanager of $&e Di'olog Ci$% -a$er Di"$ric$ DC-D/, Di'olog Ci$% from $&e No$ice" of

Di"alloance No". DC-D20120010)11/ DC-D20120020)/ DC-D201200310/ an! DC-D201200 11/, all !a$e! A#g#"$ 10, 2012, in $&e $o$al amo#n$ of

*),333,22.)

FACTS OF THE CASE

Recor!" "&oe! $&a$ A#!i$ 4eam 5ea!er A45/ Neni$a (. Deno%o, S$a$e A#!i$or

I( an! S#'ervi"ing A#!i$or SA/ 6elen 4. 7#ga&o!, S$a$e A#!i$or (, bo$& of $&eCommi""ion on A#!i$, Regional Office IX, i""#e! $&e folloing ND", all !a$e! A#g#"$ 10,

20128

1. ND No. DCWD -2012-001-(09-11) !i"alloing P813,4!.2" for 'a%men$ of

6eal$& In"#rance $o DC-D em'lo%ee" in viola$ion of COA Re"ol#$ion 2009

001 !a$e! Febr#ar% 3, 2009 an! Sec$ion 3 of A!mini"$ra$ive Or!er No. 103!a$e! A#g#"$ 31, 200.

2. ND No. DCWD-2012-002-(09) !i"alloing *2,033,)31.0 for 'a%men$ ofCollec$ive Nego$ia$ion Agreemen$ Incen$ive CNAI/ for $&e %ear 200. 4&e

gran$ing of rice, anniver"ar% an! grocer% alloance" $o$aling *:;,000.00

barre! managemen$ from f#r$&er 'a%ing ca"& CNAI $o i$" em'lo%ee".

oreover, $&e DC-D faile! $o com'le$el% im'lemen$ i$" 'ro<ec$" in C= 200.

3. ND No. DCWD -2012-003-(10) !i"alloing *2,12,91>.9 over'a%men$ ofCollec$ive Nego$ia$ion Agreemen$ Incen$ive CNAI/ for $&e %ear 200) .4&e

ca"& CNAI a" !i"alloe! in a#!i$ beca#"e $&e gran$ of rice, anniver"ar% an!

grocer% alloance" $o$aling *:1),390.00 $o DC-D em'lo%ee" alrea!% barre!$&e gran$ of CNAI. 4&e 'ro<ec$" $arge$e! for com'le$ion in C= 200) ere no$

f#ll% me$. 4&e f#n!ing "o#rce i" *1,))),:9.00 in"$ea! of *3,0,9).9 or an

over'a%men$ b% *1,09,101.9 an! alloance" of *:1),390.00 or

*2,12,91.9.

. ND No. DCWD-2012-004-11 !i"alloing *1,9)3,;.): over'a%men$ ofCollec$ive Nego$ia$ion Agreemen$ Incen$ive CNAI/ for $&e %ear 2010.

ina"m#c& a" 4&e DC-D &a" alrea!% gran$e! an! 'ai! CNAI amo#n$ing $o

1

Re'#blic of $&e *&ili''ine"

COMMISSION ON A#DIT

Regional Office No. IX

Caba$angan 6ill, ?amboanga Ci$%

4el. No. ))1;)2



*2,;9;,11.;1, i$ &a" no more bearing $o gran$ $&e "econ! $ranc&e amo#n$ing $o

*1,9)3,;.):.

4&e 'er"on" liable ere a" follo"8

Name *o"i$ion@De"igna

$ion

Na$#re of *ar$ici'a$ion in $&e

4ran"ac$ion

1. *abli$o S.*al#ca +eneral anager A" Agenc% 6ea!

2. a!e +onBaleB Divi"ion angerCA!min

A" A!mini"$ra$ive &ea!

3. +lor% Fe D. aga$an Sr. In$ernalCon$rol

A" In$ernal Con$rol Officer

. 7rigi!a 5imbaring Ca"&ier A" Ca"&ier

9. ane$ R. Na!ala Sr. Acco#n$ing

*roce""or 7

A" 7ooee'er

;. +racelia C. 7a$ilona Cor'. 7#!ge$

Officer7

Cer$if%ing a" $o availabili$% of

F#n!"

:. C&err% 5%n N. Dela *ea Acco#n$ing

*roce""or 7

*re'are! $&e vo#c&er

. All concerne! em'lo%ee" A" reci'ien$ @claiman$"

On an#ar% 22, 2013, $&e A''ellan$ file! an a''eal on $&e "#b<ec$ ND" before $&i"

Office, anc&ore! mainl% on $&e folloing gro#n!"8

1. 4&e gran$ of a!!i$ional &eal$& benefi$ $o governmen$ em'lo%ee" a" no$

con$rar% $o Re'#blic Ac$ ;:9 or $&e Salar% S$an!ar!iBa$ion 5a an!A!mini"$ra$ive Or!er 103 !a$e! 31 A#g#"$ 200 '#r"#an$ $o S#'reme Co#r$

R#ling in $&e ca"e of *rovince of Negro" Occi!en$al v". COA Commi""ioner",

e$ al. +.R. 129:, 2 Se'$ember 2010/, moreover, $&e gran$ $&ereof i" '#r"#an$ $o "ec$ion 2, Ar$icle (II of $&e Collec$ive Nego$ia$ion Agreemen$

en$ere! in$o be$een DC-D an! DC-D em'lo%ee" A""ocia$ion, &ence,

'ro'er an! legal.

2. 4&e gran$ of rice, anniver"ar% an! grocer% alloance are e"$abli"&e! an!

ei"$ing 'rac$ice a" of December 31, 1))) an! DC-D em'lo%ee" en<o%e! $&e

gran$ $&ereof before !eclara$ion $&a$ 5-D" are +OCC", &ence "&o#l! bealloe! 'er D$M %&''& *'& 2! A+% 2001. Con"eG#en$l%, $&e gran$ $&ereof

!oe" no$ bar DC-D from 'a%ing ca"& CNAI $o i$" em'lo%ee" e"'eciall% "o $&e

gran$ of CNAI a" !#l% a#$&oriBe! b% $&e DC-D 7oar!..

3. A''ellan$" &#mbl% invoe $&e r#ling of $&e S#'reme Co#r$ in $&e ca"e of

H7laG#era v". Alcala +.R. No. 11)9):/ !a$e! Se'$ember 11, 1)), an! $&e

recen$ ca"e of Ro!olfo !e e"#" v". COA +.R. No. 1)19 !a$e! #ne 10,2003, &ic& $&e COA a!o'$e! in "everal of i$" !eci"ion". 6ence, $&e reG#e"$ for

$&e recon"i!era$ion of No$ice of Di"alloance No". DC-D20120010)

11/,DC-D20120020020)/, DC-D201200310/, DC-D20120011/, all !a$e! 10 A#g#"$ 2012, more 'ar$ic#larl% on $&e a"'ec$ of $&e ref#n! of

CNA Incen$ive an! o$&er Alloance"@7enefi$", con"i!ering $&e 're"#m'$ion of

goo! fai$& in $&eir favor an! in $&e in$ere"$ of <#"$ice an! fair 'la%.

In &er An"er !a$e! A#g#"$ 2), 2013 $o $&e A''eal emoran!#m of $&e

A''ellan$", A45 Annabella C J%8

1. 4&e gran$ of &eal$& benefi$" $o DC-D em'lo%ee" on $o' of $&e one

'rovi!e! $&ro#g& *6IC 'ar$ae $&e form of a!!i$ional benefi$",, $&#"

con$rar% $o $&e 'rovi"ion" of R.A. ;:9 or $&e Salar% S$an!ar!iBa$ion 5a.

2



A" "$i'#la$e! in Sec$ion 12 of R.A. ;:9, alloance" are !eeme! incl#!e!

in $&e "$an!ar!iBe! "alar% ra$e". For em'lo%ee" $o con$in#all% en<o% $&e"ealloance" or benefi$", given 'rior $o $&e enac$men$ of R.A. ;:9, i$ m#"$

"a$i"f% $o reG#iremen$"8 1/ 4&e em'lo%ee m#"$ be inc#mben$ a" of #l% 1,

1)) an! 2/ $&e alloance or benefi$ a" no$ con"oli!a$e! in $&e

"$an!ar!iBe! "alar% ra$e a" 're"cribe! b% R.A. ;:9. A" r#le! b% $&eS#'reme Co#r$ in $&e ca"e of De e"#", e$ al. COA, +.R. No". 12:919 an!

12:9/, all !a$e! a% 10, 2009/. 4&e con$ineo#" gran$ of cer$ain

alloance" Hi" limi$e! $o inc#mben$" onl% gear $&e com'en"a$ion 'olic%$oar! "$an!ar!iBa$ion i$&o#$ #'"e$$ing $&e 'rinci'le of non !imin#$ion of

'a%. H6oever, no 'roof a" "#bmi$$e! "&oing $&a$ "#c& &eal$& benefi$"

a" given $o inc#mben$ em'lo%ee" a" of #l% 1, 1)).

-&ile $&ere i" an a#$&ori$% from $&e *re"i!en$ $&r# A.O. 02, gran$ing

ann#al me!ical c&ec#' $o all governmen$ 'er"onnel, $&i" benefi$ 'acageill incl#!e onl% $&e folloing8 *&%"ical eamina$ion, C&e"$ Xra%,

Com'le$e 7loo! Co#n$, Jrinal%"i", S$ool Eamina$ion an! EC+. In 2n!

'aragra'&, Sec$ion of $&e "ai! A!mini"$ra$ive Or!er "$a$e" $&a$8 HF#n!"

in$en!e! for $&e 'rogram "&all be #"e! onl% for $&e 'a%men$ of $&e co"$ of

$&e c&ec#' ac$#all% ren!ere! H Em'&a"i" o#r"/. -&a$ a" gran$e! $oDC-D em'lo%ee" a" "'ecifie! amo#n$ of no$ loer $&an *9,000.00 a"

"$i'#la$e! in $&e agreemen$ con$rac$, $&#" con$ravene $&e in$en$ion of "ai!a!mini"$ra$ive or!er. Al"o, "ai! Or!er !i! no$ 'rovi!e an o'$ion $&a$ i$ ma%

be conver$e! in$o mone$ar% benefi$.

2. 4&e 'a%men$" of CNA Incen$ive $o DC-D em'lo%ee" for C= 200, 200) an!

2010 ere no$ in accor!ance i$& $&e g#i!eline" con$em'la$e! in D7 7#!ge$

Circ#lar No. 200;1 !a$e! Febr#ar% 1, 200; a" a#$&oriBe! #n!er *S5C

Re"ol#$ion No. 2, ". 2003.

I$em 9.1 of D7 7#!ge$ Circ#lar No. 200;1, "$a$e"8

“All existing incentives in the CNAs in the Form of allowances and

benefits, such as staple food allowance, rice subsidy, grocery allowance, SONA

bonuses, other than the yearend benefits authori!ed under "A No# $$%$, asamended by "A No# %&&', etc#, shall be consolidated into a single cash

incentive and shall be referred to and collectively paid as the CAN (ncentive#)

I$alic o#r"/.

In &i" A''eal emoran!#m Re'l% a" correc$e!/ !a$e! Se'$ember 23, 2013, $&ea''ellan$ rei$era$e! &i" arg#men$".

. 4&e gran$ of a!!i$ional &eal$& benefi$ $o governmen$ em'lo%ee" a" no$

con$rar% $o Re'#blic Ac$ ;:9 or $&e Salar% S$an!ar!iBa$ion 5a an!

A!mini"$ra$ive Or!er 103 !a$e! 31 A#g#"$ 200 '#r"#an$ $o S#'reme Co#r$R#ling in $&e ca"e of *rovince of Negro" Occi!en$al v". COA Commi""ioner",

e$ al. +.R. 129:, 2 Se'$ember 2010/, moreover, $&e gran$ $&ereof i"

'#r"#an$ $o "ec$ion 2, Ar$icle (II of $&e Collec$ive Nego$ia$ion Agreemen$en$ere! in$o be$een DC-D an! DC-D em'lo%ee" A""ocia$ion, &ence,

'ro'er an! legal.

9. 4&e gran$ of rice, anniver"ar% an! grocer% alloance are e"$abli"&e! an!

ei"$ing 'rac$ice a" of December 31, 1))) an! DC-D em'lo%ee" en<o%e! $&egran$ $&ereof before !eclara$ion $&a$ 5-D" are +OCC", &ence "&o#l! be

alloe! 'er D$M %&''& *'& 2! A+% 2001. Con"eG#en$l%, $&e gran$ $&ereof!oe" no$ bar DC-D from 'a%ing ca"& CNAI $o i$" em'lo%ee" e"'eciall% "o $&e

gran$ of CNAI a" !#l% a#$&oriBe! b% $&e DC-D 7oar!..

3



;. A''ellan$" &#mbl% invoe $&e r#ling of $&e S#'reme Co#r$ in $&e ca"e of

H7laG#era v". Alcala +.R. No. 11)9):/ !a$e! Se'$ember 11, 1)), an! $&erecen$ ca"e of Ro!olfo !e e"#" v". COA +.R. No. 1)19 !a$e! #ne 10,

2003, &ic& $&e COA a!o'$e! in "everal of i$" !eci"ion". 6ence, $&e reG#e"$ for

$&e recon"i!era$ion of No$ice of Di"alloance No". DC-D20120010)

11/,DC-D20120020020)/, DC-D201200310/, DC-D20120011/, all !a$e! 10 A#g#"$ 2012, more 'ar$ic#larl% on $&e a"'ec$ of $&e ref#n! of

CNA Incen$ive an! o$&er Alloance"@7enefi$", con"i!ering $&e 're"#m'$ion of

goo! fai$& in $&eir favor an! in $&e in$ere"$ of <#"$ice an! fair 'la%.

ISS#E

4&e i""#e $o be re"olve! i" &e$&er or no$ $&e in"$an$ a''eal ma% be gran$e!.

DISC#SSION

Af$er a <#!icio#" eval#a$ion of all !oc#men$" a$ &an!, $&i" Office r#le" in nega$ive.

Year Total CNAI Health Grocery Total

2009 2,033,931.08 2,033,931.08 249,196.94 768,000.00 2,801,931.08

2010 3,404,859.58 3,404,859.58 286,576.64 719,350.00 4,124,209.58

2011 2,656,141.61 1,593,684.97 4,249,826.58 277,683.68 4,249,826.58

8,094,932.27 1,593,684.97 9,688,617.24 813,457.26 1,487,350.00 11,175,967.24

CNAI

1. O '/& +*&' o +*&' o H&*%'/ I*5& 'o DCWD &+%o&&

*%%o6& & ND No. DCWD -2012-001-(09-11) '/& 'o'*% *o' o

P813,4!.2".

S&5'o 12 o R&+7%5 A5' (RA) No. "!8, $&e Salar% S$an!ar!iBa$ion 5a,

"$a$e"8

“All allowances, except for representation and transportation

allowances* clothing and laundry allowances* clothing and laundryallowances* subsistence allowance of marine officer officers and

crew on board government vessels and hospital personnel* ha!ard pay* allowances of foreign service personnel stationed abroad* and such other additional compensation not otherwise specified herein as

may be determined by the +- .+epartment of udget and

-anagement/, shall be deemed included in the standardized salary

rates herein prescribed. 0xx*)

Sec$ion 12 of RA No.



In $&e ca"e of De e"#", e$. al. v". Commi""ion on A#!i$, +.R 12:919 an! 12:9, bo$& !a$e! a% 10, 2009, $&e S#'reme Co#r$ r#le! $&a$ $&e "econ! "en$ence of Sec$ion 12,

R.A No. ;:9 e're""l% recogniBe" $&e con$in#e! gran$ of cer$ain alloance". 6oever, i$f#r$&er r#le! $&a$8

(t is enough that the benefit has been existing prior to the effectivityof "#A# No# $12% and that it has not been included in the

standardi!ed salary rates# 3he continuous grant, however, is limited

to incumbents only to gear the compensation policy toward standardi!ation without upsetting the principle of nondiminution of

pay#

0xx the only re4uirements for the contineous grant of allowancesand fringe benefits on top of the standardi!ed salary rates are as

follows5 .'/ the employee must be an incumbent as of 6uly ', '7%7*

and .8/ the allowance or benefit was not consolidated in the standardi!ed salary rate as prescribed by "#A# No# $12%# Em'&a"i"

"#''lie!/

4&i" Office !oe" no$ agree i$& $&e con$en$ion of $&e a''ellan$ $&a$ $&e gran$ of

me!ical a""i"$ance i" an ei"$ing an! e"$abli"&e! 'rac$ice a" of December 31, 1))). 4&ereere no 'roof" $&a$ $&e reci'ien$" ere inc#mben$" &en RA No. ;:9 $oo effec$ on #l%

1, 1)) an! $&e% ere in fac$ receiving $&e "ai! benefi$" a$ $&e $ime.

Anen$ a''ellan$K" arg#men$ $&a$ AO 02 ca$egoricall% a#$&oriBe! $&e gran$ of

ann#al an! me!ical c&ec#' of governmen$ 'er"onnel@em'lo%ee" in a!!i$ion $o &a$ a"

'rovi!e! b% *&il&eal$&. 6e al"o 'o"i$e! $&a$ $&e gran$ of a!!i$ional &eal$& benefi$ !oe" no$con"$i$#$e irreg#lar, #nce""ar%, nor !#'lica$ion of benefi$ #n!er *&il&eal$& "ince ann#al

me!ical c&ec#' i" no$ in$egra$e! or being 'rovi!e! b% *&il&eal$&.

COA Deci"ion No. 2012012 !a$e! Febr#ar% 1;, 2012

9



5iei"e, $&i" Office !oe" no$ agree $&a$ $&e ca"e of *rovince of Negro" Occi!en$al

v". COA i" a''licable $o $&e 're"en$ ca"e.

S&5'o 3 o A'*'& O& No. 103 *'& A' 31, 2004, rea!"

0xx All National Government Agencies, tate !niversities and

X"olleges, Government O#ned and "ontrolled "orporations$GO""s%, Government &inancial Institution $G&Is% and Other

Government "orporate 'ntities $OG"'s /, whether exempt from

Salary Standardi!ation 9aw or not, are hereby directed to5

0xx.b/ uspend the grant of ne# or additional benefits to fulltime

officials and employees, except for .'/ Collective negotiation Agreement .CNA/

incentives which are agreed to be given in strict compliance with the provisions ofthe :ublic Sector 9abormanagement Council "esolutions No# ;&, s# 8;;8 and No#

8,, s# 8;;< and .ii/ those expressly provided by presidential issuance

4&e ca"e of *rovince of Negro" Occi!en$al i" a''licable $o 5+J" an! no$ $o

governmen$ office"@agencie", incl#!ing +OCC", +FC" an! O+CE". In $&a$ ca"e $&e% !i!

no$ viola$e AO 103 &ile in $&e 're"en$ ca"e $&e DC-D viola$e" AO 103.

A''ellan$ averre! $&a$ $&e gran$ i" embo!ie! in Sec$ion 2, Ar$icle (II of $&e CNA

eec#$e! b% an! be$een $&e DC-D an! i$" em'lo%ee". 4&e CNA m#"$ be en$ere! in$o inaccor!ance i$& la. 4&e 'rovi"ion of &eal$&care benefi$" in $&e CNA i" ina''ro'ria$e.

4&e "ai! benefi$" canno$ e"ca'e Sec$ion 12 of R.A No. ;:9 an! COA Re"ol#$ion No.

2009001.

I$ i" no$eor$&% $&a$ $&e 2010 Ann#al A#!i$ Re'or$ on DC-D !i"clo"e! a#!i$

fin!ing" on $&e gran$ of &eal$& benefi$" "ince C= 2003. 4&i" i" no$ con"i"$en$ i$&Sec$ion :.1.2 of COA Circ#lar 200)00; !a$e! Se'$ember 19, 200), re8 *re"cribing $&e#"e of $&e R#le" an! Reg#la$ion" on Se$$lemen$ of Acco#n$", viB8

1#'#8 3he head of agency shall initiate the necessary administrativeand=or criminal action in case of un>ustified failure=refusal to effect

;



compliance with the foregoing re4uirements by subordinate officials#

Gross negligence in disciplining subordinates #ho are the sub(ect of

repeated adverse audit findings shall sub(ect the officials concerned

to disciplinary action by the proper authorities as evidence may

#arrant #

1. ND No. DCWD-2012-002-(09) !i"alloing *2,033,)31.0 for 'a%men$ of

Collec$ive Nego$ia$ion Agreemen$ Incen$ive CNAI/ for $&e %ear 200. 4&e

gran$ing of rice, anniver"ar% an! grocer% alloance" $o$aling *:;,000.00 barre!managemen$ from f#r$&er 'a%ing ca"& CNAI $o i$" em'lo%ee". oreover, $&e

DC-D faile! $o com'le$el% im'lemen$ i$" 'ro<ec$" in C= 200.

4&e a''ellan$ con$en!e! $&a$ $&e 'a%men$ of CNAI in $&e $o$al amo#n$ of

*2,033,)31.0 a" '#r"#an$ $o $&e CNA be$een DC-D an! i$" em'lo%ee" an! a" in

accor!ance i$& 7C No. 200;1. 4&e fac$ $&a$ $&e 7C reG#ire" i$ "&all be 'ai! a" one $ime benefi$ i" of no momen$ beca#"e $&e "econ! $rance@relea"e a" an effec$ of an a''rove!

A!!en!#m, "'ecificall% Sec$ion 11 Ar$icle (III &ic& 'rovi!e" for an a!!i$ional 30L of

$&e "aving" genera$e! a$ $&e en! of eac& %ear for im'rovemen$ of oring con!i$ion" $o be

a!!e! a" 'ar$ of CNA. 4&e 'a%men$ a" !#l% "#''or$e! an! a''rove! b% DC-D 7OD.

4&e a''ellan$ con$en!e! $&a$ $&e alloance" are "e'ara$e an! !i"$inc$ from CNAI an!ere being en<o%e! b% DC-D em'lo%ee" &o are inc#mben$" a" of 31 December 1)))

li"$ of Inc#mben$"/ an! ere gran$e! before DC-D a" even !eclare! a +OCC.

9..1

“All existing incentives in the CNAs in the form of allo#ances and benefits ,

such as staple food allowance, rice subsidy, grocery allowance, inflation

allowance, SONA bonus, bonuses other than the yearend benefit authori!ed

under "A No# $$%$, as amended by "A No# %&&', etc#, shall be consolidated

into a single cash incentive, and shall be referred to and collectively paid as

the "NA Incentive#)

2#1 of C No 8;;$'

“3he CNA for the year shall be paid as a onetime benefit after the end ofthe year, provided that the planned programs)activities)pro(ects have been

implemented and completed in accordance #ith the performance targets for

the year #)

Clearl%, $&e 'a%men$ of CNA Incen$ive of ca"& amo#n$ing $o *2,033,)31.0 a"

con$rar% $o 7C No. 200;1. 4&e a#!i$or confirme! $&a$ $&e !i"$ric$ 'ro<ec$ a" for

im'lemen$a$ion reflec$e! in $&e C= 200 CA*EX 7#!ge$ ere no$ all com'le$e!@fini"&e!.4&e #nfini"&e! 'ro<ec$" ere carrie! over in $&e %ear 200) CA*EX 7#!ge$ for

com'le$ion &ic& ma!e managemen$K" a""er$ion of &aving "#c& "aving" of *2,92,1.09

irra$ional, $&#" $&e 'a%men$ of $&e CNA incen$ive for $&e %ear 200 &a" no legal ba"i".5iei"e, 4&e gran$ of rice, anniver"ar% an! grocer% alloance" in $&e $o$al amo#n$ of

*:;,000.00 "&o#l! be !i"alloe! beca#"e $&ere ere no 'roof" $&a$ $&e reci'ien$" ere

inc#mben$" &en RA No. ;:9 $oo effec$ on #l% 1, 1)) an! $&e% ere in fac$ receiving$&e "ai! benefi$" a$ $&e $ime.

2. ND No. DCWD -2012-003-(10) !i"alloing *2,12,91.9 over'a%men$ of

Collec$ive Nego$ia$ion Agreemen$ Incen$ive CNAI/ for $&e %ear 200) .4&e ca"&

CNAI a" !i"alloe! in a#!i$ beca#"e $&e gran$ of rice, anniver"ar% an! grocer%alloance" $o$aling *:1),390.00 $o DC-D em'lo%ee" alrea!% barre! $&e gran$ of

CNAI. 4&e 'ro<ec$" $arge$e! for com'le$ion in C= 200) ere no$ f#ll% me$. 4&ef#n!ing "o#rce i" *1,))),:9.00 in"$ea! of *3,0,9).9 or an over'a%men$ b%

*1,09,101.9 an! alloance" of *:1),390.00 or *2,12,91.9.

:



A''ellan$ averre! $&a$ DC-D &a" a ne$ "aving" amo#n$ing *,29;,0:.;:. 6ence

0L of &ic& i" eG#ivalen$ $o *3,0,9).:.

4&e 'a%men$ of CNA Incen$ive of ca"& amo#n$ing $o *3,0,9).9 a" con$rar% $o

7C No. 200;1. 4&e a#!i$or confirme! $&a$ $&e !i"$ric$ 'ro<ec$ a" for im'lemen$a$ion

reflec$e! in $&e C= 200) CA*EX 7#!ge$ ere no$ all com'le$e!@fini"&e!. 4&e#nfini"&e! 'ro<ec$" ere carrie! over in $&e %ear 2010 CA*EX 7#!ge$ for com'le$ion

&ic& ma!e managemen$K" a""er$ion of &aving "#c& "aving" of *2,92,1.09

irra$ional, $&#" $&e 'a%men$ of $&e CNA incen$ive for $&e %ear 200 &a" no legal ba"i".5iei"e, 4&e gran$ of rice, anniver"ar% an! grocer% alloance" in $&e $o$al amo#n$ of

*9:;,90.00 "&o#l! be !i"alloe! beca#"e $&ere ere no 'roof" $&a$ $&e reci'ien$"

ere inc#mben$" &en RA No. ;:9 $oo effec$ on #l% 1, 1)) an! $&e% ere in fac$receiving $&e "ai! benefi$" a$ $&e $ime.

3. ND No. DCWD-2012-004-11 !i"alloing *1,9)3,;.): over'a%men$ ofCollec$ive Nego$ia$ion Agreemen$ Incen$ive CNAI/ for $&e %ear 2010. ina"m#c&

a" 4&e DC-D &a" alrea!% gran$e! an! 'ai! CNAI amo#n$ing $o *2,;9;,11.;1, i$

&a" no more bearing $o gran$ $&e "econ! $ranc&e amo#n$ing $o *1,9)3,;.):.

A" $o $&e !i"alloe! "econ! relea"e of CNA incen$ive for C= 2011 e rei$era$e$&a$ $&i" a" $&e effec$ of an a''rove! A!!en!#m of $&e CNA $&a$ 30L of $&e

"aving" allo$$e! for $&e im'rovemen$ of oring con!i$ion" of DC-D &ic&ma% be a!!e! an! forme! 'ar$ of CNA incen$ive $o be given an! !i"$rib#$e! $o

DC-D em'lo%ee".

4&e 'a%men$ of CNA Incen$ive of ca"& amo#n$ing $o *,2),2;.9 a"

con$rar% $o 7C No. 200;1. 4&e a#!i$or verifie! $&a$ $&e DC-D C= 201

7#!ge$ a''rove! #n!er 7oar! Re"ol#$ion No. 02 M 09, ". 2010, revelea! $&a$

ma<ori$% of $&e e'en"e acco#n$" &a! bloa$e! an! #nreali"$ic b#!ge$", rel#$ing$o a &ig& level of variance" again"$ ac$#al e'en"e" inc#rre!, affor!ing a i!e

aven#e for CNAI of i$" em'lo%ee".

-i$& regar! $o $&e allege! #nfini"&e! 'ro<ec$" for C= 200, 200), an! 2010 a

co'% of DC-D Accom'li"&men$ Re'or$ are a$$ac&e! &ere$o. 4&e

accom'li"&men$ o#l! be rela$ive $o $&e !a$e of ac$#al "$ar$ of $&e 'ro<ec$ no$ a" 'rogramme! in $&e b#!ge$ for ca'i$al e'en!i$#re" for $&e %ear.



)



R#:IN;

WHEREFORE, in vie of $&e foregoing, $&e &erein a''eal i" &ereb% DENIEDan! ND No. 11-00"-100-(10) !a$e! Oc$ober 12, 2011 in $&e amo#n$ of P2,!"9,!88.00 i"

&ereb% AFFIRMED. 4&i" !eci"ion ma% be a''eale! '#r"#an$ $o $/& 2009 R&& R%&

o Po5&& of $&e Commi""ion on A#!i$ i""#e! #n!er COA emoran!#m No. 200)

02 !a$e! 03 November 200).

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COA R&o%'o No. 200-001 *'& F&7* 3, 200, &ic& 'rovi!e"8

0xx the procurement of private health insurance by any agency orinstrumentality of the government is an irregular e*penditure and

constitute unnecessary use of public funds #hich cannot be

countenanced by this "ommission.

#

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I$em of COA Re"ol#$ion No. 20000; 'rovi!e" $&a$ 5-D" "&all com'l% "$ric$l% i$&$&e 'arame$er" lai! !on b% $&e D7 for $&e con$in#e! recei'$ of alloance" an!

benefi$" en<o%e! a" of #l% 1, 1)).

COA Re"ol#$ion No. 20000; !a$e! Se'$ember 1, 200, rea!"

1. ?ater districts shall comply strictly with the parameters laid down by the

+epartment of udget and -anagement for the continued receipt of allowancesand benefits en>oyed as of 6uly ', '7%7 embodied in two .8/ separate letters of

the Secretary of the +epartment of udget and -anagement addressed to the

@eneral -anager, +avao City ?ater +istrict .+C?+/ and the :resident, :hilippine Association of ?ater +istricts .:A?+/ dated November 7, 8;;8

and April 81, 8;;', respectively, which letters shall be denominated as Annexes

“A) and “) and form integral part of this "esolution Jn!er"coring "#''lie!/

A''ellan$ averre! $&a$ DC-D em'lo%ee" &ave alrea!% been en<o%ing $&e "ai! gran$ before $&e SCK" 'rono#ncemen$ in Davao Ci$% -a$er Di"$ric$, el.al. v". CSC $&a$ 5-D"con"i!ere! a" +OCC" &ic& fall #n!er $&e <#ri"!ic$ion of $&e CSC an! COA. 4&e gran$ of

me!ical a""i"$ance i" an ei"$ing an! e"$abli"&e! 'rac$ice a" of December 31, 1))).

4&e "ai! gran$ of &eal$&care benefi$ i" con$rar% $o COA Re"ol#$ion No. 2009001 &ic&

'ro&ibi$" $&e 'roc#remen$ of &eal$& in"#rance benefi$" from 'riva$e agencie" b% an%

agenc% or in"$r#men$ali$% of $&e governmen$.

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