COA uncovers anew ‘extravagant expenditures’ in Capitol
‘Exercise prudence,’ State Auditors ask
Once again, official explanation has been sought by government auditors from Iloilo Governor Niel Tupas Sr. following post-audit disbursements of “unreasonable expenses.”
This time not coming from “official expenses” of the governor, the Commission on Audit (COA) issued an Audit Observation Memorandum (AOM) on travel allowances of top Capitol executives.
The Commission in a check discovered authority granted to department heads for a daily allowance of P2,500, P2,000 for assistant department heads and P1,500 for hospital chiefs.
In a random check of disbursement vouchers showing meals and incidental expenses, the COA found the amount charged and paid for by the government as grossly excessive, exorbitant and too lavish.
For instance, one receipt for one meal of one Capitol executive showed a bill of P2,000. To note, a sack of well-milled commercial rice roughly costs P1,600.
COA was direct with its message to the governor, “Such can be considered quite excessive for a meal of an individual.”
And it did not stop there.
“Further, two (2) ORs show that personal effects and a laptop accessory are among the expenses reimbursed,” the COA noted. ORs are official receipts required with the disbursement vouchers.
COA in seeking the governor’s say on the discovery reminded that as per government provision, travel expense is defined “as the amount authorized to cover hotel/lodging rate, meals and incidental expenses excluding transportation expenses going to and from.”
Another government provision too that states “travel expenses of government personnel regardless of rank and destination shall be in the amount of Eight Hundred Pesos (P800) per day which shall be apportioned as follows: a) fifty percent (50%) for hotel/lodging, b) thirty percent (30%) for meals and c) twenty (20%) for incidental expenses.”
Claims though of actual travel expenses in excess of what the government allows may be authorized “upon certification of the head of agency concerned as absolutely necessary in the performance of an assignment and presentation of bills and receipts.”
“It is emphasized that this privilege is extended only to the department heads, assistant department heads and chiefs of hospitals,” the COA wrote while adding that it is wrong to use said government allowance “for the payment of meals of other individuals……the travel law clearly states that limits are set for daily expenses ( not weekly or monthly).”
And more reminders in the AOM to the governor calling his attention to government regulations aimed at preventing excessive and extravagant expenditures.
The ‘travel allowance AOM’ cited Section 164, Article 2 of the Government Accounting and Auditing Manual defining excessive expenditures as “unreasonable expense or expenses incurred at an immoderate quantity or exorbitant price. It also includes expenses which exceed what is usual or proper as well as expenses which are unreasonably high and beyond just measure or amount. They also include expenses in excess of reasonable limits.”
COA likewise reminded Tupas, “the term ‘extravagant expenditures’ signifies those incurred without restraint, judiciousness and economy. Extravagant expenditures exceed the bounds of propriety. These expenditures are immoderate, prodigal, lavish, luxurious, wasteful, grossly excessive and injudicious.”
As such the commission’s recommendations.
“The Province should exercise prudence in granting reimbursements for out of town travels. For instances when travel expenses exceed the P800.00 daily limit, the agency head should attach a separate certification as to the necessity of the expenses to be reimbursed. Said certification should be attached to the corresponding disbursement voucher,” the COA wrote.