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The COA said the FDCP concerned officials and the passive recipients/payees who are named liable under the notice of disallowance “must return the disallowed amounts.”

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Willard Cheng

ABS-CBN News

The Commission on Audit (COA) has denied the appeal of former Film Development Council of the Philippines (FDCP) chair Mary Liza Diño and affirmed its disallowance of the cash advances for the financial assistance of the employees of the FDCP during the COVID-19 pandemic.<div><a href="https://news.abs-cbn.com/entertainment/2024/4/9/jose-javier-reyes-is-new-fdcp-chairman-1206">Jose Javier Reyes is new FDCP chairman</a></div>The breakdown includes payments to two private medical companies as health assistance to official and employees of the FDCP in the amounts of P400,000.00 and P476,896.87, respectively.  In its decision dated December 7, 2023, the COA reiterated &quot;the grant of financial and health care assistance is not clothed with authority considering that it lacked review by the DBM and the eventual approval by the President.”The COA  Audit Team Leader (ATL) and the Supervising Auditor (SA) earlier disallowed the total amount of P400,000.00 or P5,000.00 granted to each Contract of Service (CoS)/Job Order (JO) personnel of FDCP, saying “the nature of such disbursement is considered as irregular as contemplated under COA Circular No. 2012-0031° dated October 29, 2012.”The COA had also disallowed the amount of P476,896.87 representing the payments to two private medical companies as health assistance to FDCP officials and employees “for being contrary to COA Resolution No. 2005-001 dated February 3, 2005 which provides that the procurement of private health insurance by any government agency or instrumentality is an irregular expenditure and constitutes unnecessary use of public funds.&quot;  This referred to health care assistance in the form of prepaid Health Management Organization (HMO) cards amounting to P5,000.00 per person.The FDCP had argued that “the approval of the head of the agency is sufficient for the issuance of support mechanisms such as monetary or other forms of incentives, citing Civil Service Commission MC No. 18, s. 2020.The FDCP also said the health care assistance provided to the FDCP workers, a one-time health care package which covers consultation fees for physicians and other health-related services valid for one year was deemed  “necessary in light of the possible severe health effects of the COVID-19.” But the COA said “ it is not within the regulatory power of the CSC to grant additional allowances or benefits” and stressed that 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 said.4The COA said the FDCP concerned officials and the passive recipients/payees who are named liable under the notice of disallowance “must return the disallowed amounts.”<div><a href="https://news.abs-cbn.com/entertainment/2024/3/14/look-tirso-cruz-s-statement-on-fdcp-resignation-1827">LOOK: Tirso Cruz&#x27;s statement on FDCP resignation</a></div> “As stated above, the FDCP officials are solidarily liable for the disallowances less the amounts returned by the payees who are liable to the extent of the amount they received,” the COA said.The Audit Team Leader and the Supervising Auditor were also instructed by COA “to verify whether the regular employees of the FDCP likewise received the cash assistance similar with that granted to the Contract of Service/Job Order personnel as disallowed under ND No. 2021-001-101 and whether the same was improperly charged against other allotments, and to issue a Supplemental ND, if warranted.”

The COA said the FDCP concerned officials and the passive recipients/payees who are named liable under the notice of disallowance “must return the disallowed amounts.”

COA affirms disallowance of cash advances for FDCP employees

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COA affirms disallowance of cash advances for FDCP employees

Willard Cheng,

ABS-CBN News

Published June 28, 2024 04:12 PM PHT

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FDCP

Liza Dino

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