Motherhood statements to explain confidential funds use invalid – SC

THE Commission on Audit’s (COA) position that confidential funds spending for peace and order concerns must be closely related to law enforcement agencies has been upheld by no less than the Supreme Court (SC).

The 14-page SC en banc decision dated July 11, 2023 held that there was no grave abuse of discretion on the part of the COA for issuing a notice of disallowance against the P2.6 million cash advance made by Laak, Compostela Valley former mayor Reynaldo Navarro in 2011 for supposed intelligence and confidential activities.

According to the COA’s Intelligence and Confidential Funds Audit Unit (ICFAU), the amount available to the LGU for confidential expenses was either three percent (3%) of the municipality’s total annual budget for 2011 or 30 percent of that year’s peace and order (PO) budget – whichever is lower.

This was set under Item II.2 of the Department of the Interior and Local Government (DILG) Memorandum Circular No. 99-65.

Three percent of Laak’s 2011 total budget of P143.892 million was P4.317 million, while 30 percent of its P5 million peace and order purse was only P1.5 million. The latter amount was deemed the maximum allowable funding for confidential activities.

But since the cash advance drawn was for P4.1 million, the audit team disallowed the P2.6 million or the amount exceeding the limit.

The municipal government argued that its PO budget was P18.094 million but COA did not consider its P4.24 million “human rights advocacy” spending and P8.85 million for “community development and monitoring program” as legitimate PO expenditures.

If the bigger peace and order (PO) budget was allowed, the 30 percent limit would have been P5.43 million.

“Factual findings of administrative bodies charged with their specific field of expertise are afforded great weight by the courts, and in the absence of substantial evidence showing that such findings were made from an erroneous estimation of the evidence presented, they are deemed conclusive and binding upon this Court. In the interest of stability of the governmental structure, they should not be disturbed,” the SC ruled.

Likewise, it found no error on the part of the ICFAU in reducing the PO budget of