Findings No.6 COA Annual Audit Report 2005

July 25, 2008

6. Payments of Productivity Incentive Allowance to elementary and secondary public school teachers totaling P647,611.80 were charged to Special Education Fund, in violation to Section 272 of RA 7160 and DECS, DBM & DILG Joint Circular No.1 of 1998.

Sections 272 of RA 7160 explicitly provide that:

“The proceeds of Special Education Fund shall be allocated for the operation and maintenance of public schools, construction and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals and sports development as determined and approved by the Local School Board.” (Underscoring supplied)

By way of implementation, Joint Circular No. 01 series of 1998 of DECS, DBM and DILG, under the caption “4.0 Prioritization of Expenses chargeable to SEF”, provide that:

“The Local School Boards shall give priority to the following expenses chargeable against Special Education Fund (SEF)”:

”Operation and Maintenance of public schools, including organization of extension, non formal, remedial and summer classes as well as payment of existing allowances of teachers granted by local government units chargeable against SEF as of December 1997, provided that any additional allowances that may be granted to teachers by LGUs shall be charged to the general fund of LGUs subject to existing budgeting rules and regulations. xxx” (Underscoring supplied)

The audit reveals the payments of productivity incentive allowance made to elementary and secondary public school teachers was charged to Special Education Fund for CY 2005 in the total sum of P647,611.80, as follows:

1. School Supervision – General SupervisionP 324,454.002. Public Education – Elementary Education163,036.803. Public School – Secondary Education160,161.00 TotalP647,611.80

While the claimed per se may not be illegal, these allowances must not be charged against the Special Education Fund. but maybe charged to the General Fund whenever authorized.

The Commission (COA) has ruled, “Special Education Fund cannot be legally disbursed for the payment of teacher’s additional monthly allowance.” However, the local government unit is empowered to provide additional allowances and other benefits to public elementary and high school teachers stationed in or assigned at the City/ Municipality when its finances allow, as contained in the following decisions:

COA Decision No. 96-287 dated June 4, 1996, denying the request of then Manila City Mayor Alfredo Lim for authority to use the SEF for the grant of monthly allowances to teachers assigned in that City, but the sanggunians, however, have the power to appropriate such amounts from the General Fund;

COA Decision No. 96-651 dated November 21, 1996 granting a compensatory allowance of P1,000.00 per month to teaching and non teaching personnel of Mandaue City, but this should be taken from the General Fund and not from the Special Education Fund.

During the exit conference, the representative of the City Division Superintendent of Schools, Division Office, DepEd, Iligan City asked for reconsideration. After further discussion, she asked that she be given time to refer the matter to the City Superintendent for comment.

Recommendations

In conformity with the provisions of Republic Act No. 7160 relating to the defined usage or utilization of the Special Education Fund, refrain from providing productivity incentive allowance/ honoraria to DepEd personnel.

The management is not precluded, however, should its finances allow, providing appropriation in regard to these expenses under the General Fund of the City.

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Written by admin · Filed Under Commission on Audit, Iligan City