COA affirms disallowance vs cash perks of film council

THE Commission on Audit (COA) has thrown out the petition for review filed by officials of the Film Development Council of the Philippines (FDCP) seeking the lifting of Notices of Disallowances (NDs) issued on March 8, 2021 against the grant of cash assistance to non-permanent personnel totaling P400,000 and health assistance to agency officials and employees totaling P476,896.87.

Among those held liable in the disallowance were former FDCP chairperson Mary Liza Diño, budget officer Jose Carlos Pasion, executive director Ria Anne Rubia, chief administrative officer Emelita Alquiza and various payees.

Records showed the assistance were released as cash advances as part of the FDCP’s response to the COVID-19 pandemic.

The one-time cash assistance intended for food and groceries at P5,000 each was authorized through Office Memorandum and Special Order No. 71 dated June 26, 2021, covering all agency personnel “regardless of job status.”

According to the audit team, this meant that P400,000 went to contract-of-service and job order hires making it an irregular disbursement in the absence of any legal basis.

“Under COA Circular No. 2012-003 …the grant of food allowance, rice subsidy, and health care allowance is considered as irregular expenditure because there is no law authorizing the grant of such allowances, thus, must be disallowed in audit,” it said.

On the other hand, the grant of health care assistance was found lacking prior clearance from the Department of Budget and Management (DBM).

“The financial and health assistance granted by FDCP to its employees are additional benefits covered by the requisite approval from the DBM and the Office of the President. With no such approval or authority, the extension of the assistance was without legal basis,” the COA En Banc declared.

To make matters worse, auditors also found that the two Health Maintenance Organizations (HMOs) tapped for the medical assistance were chosen despite the absence of a competitive public bidding which is a mandatory procedure under RA 9184 or the Government Procurement Reform Act.

“As to the FDCP officials who approved and certified the payment of the disallowed benefits, they cannot claim