OFFICIALS of the Southern Leyte State University (SLSU) and members of its Board of Regents will face an investigation by the Office of the Ombudsman for using P2.23 million from its special trust fund (STF) to pay salary differentials to faculty members in 2012.
The Commission on Audit, however, held that those who authorized and approved tapping the trust fund as well as the faculty members who were paid out of the sum are not required to refund the money.
“In this case, the net disallowed amount is equal to zero since the entire amounts of the NDs (notices of disallowance) pertain to salary differentials, which the recipients have been excused from return in view of actual services rendered,” the commission said in a five-page decision.
While they are no longer required to refund the disallowed amount, the COA Commission Proper said any official of the state university who had a role in authorizing the grant, certifying its propriety, and approving payment out of the STF are still jointly liable.
“Nonetheless, in view of the irregular use of the STF, this case shall be referred to the Office of the Ombudsman for investigation and filing of appropriate charges against SLSU authorizing/approving/certifying officials, if warranted,” the COA said.
Records showed the salary differentials were paid in January to December 2012 based on the implementation of the third and fourth cycle of faculty position reclassification for state universities and colleges (SUCs) necessitating salary adjustments under the Depart of Budget and Management (DBM) National Budget Circular No. 461.
Auditors issued 13 notices of disallowance in March and April 2013, citing improper use of the STF as fund source based on COA Circular No. 2000-002 and Commission on Higher Education Memorandum Order No. 20, series of 2011.
University officials invoked fiscal autonomy under the Higher Education Modernization Act of 1997, a letter of the DBM Region 8 director, and the Organization, Position Classification, and Compensation Bureau memorandum dated Dec. 12, 2007 allowing the salary adjustment to be charged against the savings and income of SUCs.
The COA Commission Proper affirmed the disallowance, noting the Supreme Court had resolved the same issue by upholding the COA stand in the case of Benguet State University vs. COA.
In the said case, the SC clarified that the STF may only used by the Board of Regents for “instruction, research, extension or other programs/projects of SUCs” of similar nature.
It also noted that DBM NBC No. 461 specifically identified the annual budget of the SUC as the source of funding for salary differentials.
“Thus, the STF cannot be used for payment of salary and bonus differentials of officials and employees of SLSU. Clearly, the funds for payment of salary differentials of faculty members shall be sourced from the regular budget of the SLSU in the annual General Appropriations Act, and not from the STF,” COA said.
Where the DBM circular letter disagreed with the letter of laws, the commission said the former would have to be disregarded.
