THE Commission on Audit has affirmed the liability of top officials of the Cavite State University (CvSU) for the disallowed payout of benefits totaling P11.99 million under the Program on Awards and Incentives for Service Excellence (PRAISE) in 2016.
In addition, the COA en banc instructed the audit team to evaluate the degree of participation of the Board of Regents and to issue a supplemental Notice of Disallowance if it is warranted.
Likewise, the Prosecution and Litigation Office was directed to forward all records of the audited transactions to the Office of the Ombudsman for criminal investigation and indictment if probable cause is found.
Records showed CvSU officials and employees received incentives through the issuance of eight checks dated May 2016.
“The total amount of P11,998,333.32 was disallowed in audit because the payment for the PRAISE cash incentive to CvSU officials and employees was charged against the Special Trust Fund (STF) of the University,” the commission said.
Auditors pointed out that under COA Circular No. 2000-02, the STF may only be used to “augment other operating expenses and to pay authorized allowances and fringe benefits” but not PRAISE incentives.
Held liable were former University president Divina Chavez, chief administrative officer Lolita Herrera, vice president for Administrative and Support Services Hernando Robles, vice president for Academic Affairs Rhodora Crizaldo, internal auditor Edna Mojica, budget officer Corazon Rodrin, and the employees who were paid the disallowed benefits.
“The utilization of the STF for the payment of the PRAISE incentive to the officials and employees of the CvSU in the CY 2015 is not valid. The STF may only be used for expenses necessary for instruction, research and extension as provided by law,” the COA noted.
However, the commission relieved Human Resources officer Mary Jane Tepora of any liability, noting that her participation in the PRAISE incentives did not involve any exercise of discretion on her part.
For the rest of those held liable, the COA required them to refund the amounts they received.
“Given the foregoing, the ND (notice of disallowance) is sustained and the refund of what has been illegally received by the passive recipients must be ordered,” the COA added.
