COA disallows COLA for Cebu City teachers
The Commission on Audit (COA) has disallowed Cebu City from paying public school teachers cost of living allowance (COLA) for the months of January to December 2015 amounting to P80.2 million.
“The legal basis presented by the city in paying the cited allowances is without merit due to the provisions of the following laws, rules and regulations,” read the COA report dated October 20, 2016.
The COA notice of disallowance was sent to Mayor Tomas Osmeña last month, copy furnished to City Accountant Arlene Rentuza, Councilor Joy Augustus Young, the city's deputy mayor for education and scholarships, and Dr. Bianito Dagatan, Cebu City Schools Division Superintendent.
COA cited that under Section 6 of Department of Budget and Management (DBM) Budget Circular No. 2001-03, the giving of COLA to teachers is deemed unauthorized.
“In view of the foregoing, payment of allowances and compensations, such as COLA, amelioration allowance and inflation-connected allowance, among others, which are already integrated in the basic salary, are deemed unauthorized,” read COA's report.
In year 2015, at least 8,000 public school teachers benefitted from COLA.
On May 11, 2016, the audit team received a letter from Ronald Diola, a former representative of the Local School Board, detailing his legal basis for releasing monthly COLA.
He cited that Section 18 of Republic Act 4670, also known as Magna Carta for Public Schools, provides for COLA to be given to teachers.
Further, under Local Government Code of the Philippines, the city government is authorized to set aside funds for financial aid for teachers.
“When the finances of the city government allow, provide for additional allowances and other benefits top judges, prosecutors, public elementary and high school teachers, and other national government officials stationed in or assigned to the city,” reads Section 458 of the Local Government Code.
With this notice of disallowance, identified liable persons are directed to settle the disallowance amount within six months upon receipt thereof.
These individuals are former mayor Michael Rama, former city treasurer Diwa Cuevas, former city administrator Dr. Lucelle Mercado, principal Rosemarie Novabos, and Giovani Delgado - Accountant II.
Others include Glodel Dexter Flores, Cebu City Public Schools Teachers president, and Isidro Tumulak Jr., Cebu City Federation of Parents-Teachers Association Inc. president.
“Please direct the aforementioned persons liable to settle immediately the said disallowance. Audit disallowances not appealed within six (6) months from receipt hereof shall become final and executory as prescribed under Section 48 and 51 of Presidential Decree 1445,” the notice from COA further stated, signed by State Auditor IV Maria Daisy Bercede.
Osmeña was not able to give comment on the matter as he was away on an official trip.
For his part, Dagatan told The FREEMAN that he can't comment as he has yet to see a copy of the notice of disallowance.