DECISION NO.

2017-045
February 28, 2017

Subject: Automatic Review of Commission on Audit Regional Office No. VI Decision No.
2014-007 dated July 17, 2014, on the appeal of Hon. Wilbert Ariel I. Igoy, Mayor,
Municipal Government of Malinao, Aklan, et al., from Notice of Disallowance Nos.
10-001-101(10), 10-002-101(10), 10-004-101(10) to 10-009-101(10), and 2010-
010-100(10), issued on various dates, pertaining to the excess claim of registration
fee and per diem in the total amount of P37,416.00

DECISION

FACTS OF THE CASE

For automatic review, pursuant to Section 7, Rule V of the 2009 Revised Rules of Procedure of the Commission on Audit
(COA) [RRPC], is COA Regional Office (RO) No. VI Decision No. 2014-007 dated July 17, 2014, which partially granted the
consolidated appeal of Hon. Wilbert Ariel I. Igoy, Municipal Mayor; Ms. Josephine I. Iquina, Ms. Eleanor G. Agustino, Mr. John
Ruen I. Yerro, Mr. Juanito I. Iscala, Mr. Richard I. Iquina, Mr. Zacarias M. Yabut, and Ms. Eunice I. Iquina, Sangguniang Bayan
(SB) Members; Mr. Gregorio V. Imperial, Jr., Liga President/Punong Barangay; and Mr. Vicente Luis D. Marcos, Municipal
Accountant, all of the Municipal Government of Malinao (Municipality), Province of Aklan, from Notice of Disallowance (ND)
Nos. 10-001-101(10), 10-002-101(10), and 10-004-101(10), all dated August 11, 2010; 10-005-101(10), 10-006-101(10), and 10-
007-101(10), all dated August 12, 2010; 10-008-101(10) dated September 14, 2010; 10-009-101(10) dated September 15, 2010;
and 2010-010-100(10) dated November 23, 2010, in the total amount of P37,416.00, relative to the excess claim of registration
fee and per diem.

Records show that SB members Ms. Josephine I. Iquina, Ms. Eleanor G. Agustino, Mr. John Ruen I. Yerro, Mr. Juanito I.
Iscala, Mr. Richard I. Iquina, Mr. Zacarias M. Yabut, and Ms. Eunice I. Iquina; and Ex-officio Sangguniang Panlalawigan (SP)
member Hon. Wilbert Ariel I. Igoy, attended the Philippine Councilors League (PCL)-sponsored 2010 2 nd Quarterly National
Executive Officers and National Board (NEO-NB) Meeting and 2 nd Series of PCL Continuing Local Legislative Education
Program (PCL-CLLEP)1 on June 24 to 26, 2010 held at One MGM Boracay Resort Village, Station 2, Boracay Island, Province of
Aklan, for which they were granted cash advances for transportation allowance, per diem, and registration fee.

On the other hand, Mr. Gregorio V. Imperial, Jr., Liga President/Punong Barangay attended the 3 rd National Convention on
July 29 to 31, 2010 at SMX Convention Center, Mall of Asia Complex, Reclamation Area, Roxas Blvd., Pasay City and received
cash advances for transportation allowance, per diem, and registration fee. The convention was held pursuant to Memorandum
Circular No. 2010-002 2 issued on June 1, 2010 by Hon. Jesus C. Cruz, Secretary General and Hon. Ricojudge Janvier M.
Echiverri, National President of the Liga ng mga Barangay (LnB), Malinao, Aklan, informing all LnB Chapter Presidents and other
concerned league officials to attend the said convention.

Upon audit of the liquidation of the cash advances, the Audit Team Leader (ATL) issued nine NDs on the ground that
payment for the seminar fees exceeded the allowable rates prescribed under National Budget Circular (NBC) No. 442 dated March
29, 1995, as amended by NBC No. 486 dated March 26, 2003, which states:

3.2 The registration fee or charge for participation in said convention, seminar, etc., shall not exceed
P1,200 per day per participant. Any amount in excess of the prescribed rate shall be at the expense of the
participant.

The total excess fees were determined to be P37,416.00, as detailed below:

PAYEES 3-day NEO-NB Meeting & 3-day Liga ng Barangay

PCL-CLLEP 3rd National Convention
ND No. Amount ND No. Amount
Eunice I. Iquina 10-001-101-(10) P4,190.00
Josephine I. 10-002-101-(10) P4,190.00
Iquina
Eleanor G. 10-004-101-(10) P3,854.00
Agustino
Juanito I. Iscala 10-005-101- (10) P3,840.00
John Ruen I. 10-006-101- P3,854.00
Yerro (10)
Richard I. Iquina 10-007-101- P3,854.00
(10)
Gregorio V. 10-008-101- P5,500.00
Imperial, Jr. (10)
Zacarias M. 10-009-101- P3,854.00
Yabut (10)
 Wilbert Ariel I. 2010-010- P4,280.00
Igoy 100(10)
Sub-Total P31,916.00 P5,500.00
TOTAL P37,416.00

The above-named payees and Mr. Vicente Luis D. Marcos, Municipal Accountant, who was also held liable under the NDs,
filed an Appeal Memorandum before the Regional Director (RD), COA RO No. VI, contending that NBC No. 486 does not apply to
seminars, conventions, and symposia, and similar non-training gatherings sponsored by a government entity.

On July 17, 2014, the RD, COA RO No. VI, partially granted the appeal. The RD ruled that NBC No. 486 does not apply to
seminars, conventions, and conferences sponsored by the PCL and the LnB, both being government organizations. Accordingly,
the disallowance of excess claims for registration fees was lifted and the travelling allowance was reduced to a total amount of
P4,710.00.

Hence, this automatic review.

ISSUE

The issue to be resolved is whether or not COA RO VI Decision No. 2014-007 dated July 17, 2014, partially granting the
appeal, is in order.

DISCUSSION

The issuance of the NDs was anchored on the application of NBC No. 442, as amended by NBC No. 486, prescribing the
rate of registration fee at P1,200.00 each participant per day. The ATL and the SA disallowed the payment of registration fee in
excess of P1,200.00 against each participant-payee.

Section 1.0 of NBC Circular No. 486 specifically states that:

This Circular is being issued to amend NBC No. 442 on the cost of participation of government officials
and employees in conventions, seminars, conferences, symposia and similar non-training gatherings
sponsored by non-government and private organizations and adjusting the rates to cover the increasing
expenses for the activity. (Underscoring supplied)

Clearly, the aforequoted provision pertains only to conventions, seminars, conferences, symposia, and similar non-training
gatherings sponsored by non-government or private organizations. In this case, the NEO-NB Meeting and CLLEP were sponsored
by the PCL, and the 3 rd National Convention, by the LnB.

The LnB is a government organization as opined by the Department of Justice (DOJ) in its Opinion No. 41, series of 1995
dated May 5, 1995, being an association, federation, league or union created by law or by authority of law, whose members are
either appointed or elected government officials. This Commission, in COA Decision Nos. 2014-258 and 2014-261, 3 consistently
applied DOJ Opinion No. 41 in all local government leagues such as PCL. More so, in COA Resolution No. 2011-014 dated
December 13, 2011, the Commission resolved to subject all local government leagues to its audit jurisdiction.

This Commission finds the claim of P9,000.00 (P3,000.00/day) for the attendance in the 2 nd Quarterly NEO-NB Meeting
and the 2 nd Series of 2010 PCL-CLLEP held at One MGM Boracay Resort reasonable in this case. The amount covered
registration fee and the cost of hotel accommodation for three days/two nights and the meals of the participants. Likewise, the
P10,000.00 (P5,000.00/day) registration fee, which is inclusive of the cost of two nights accommodation at the Heritage Hotel and
other incidental costs relative to the 3 rd National Convention of the LnB held at the SMX Convention Center at the Mall of Asia
Complex at Roxas Boulevard, Pasay City, is reasonable.

However, the registration fees already covered the lodging and meals of the participants, the claim for travel expenses
under Executive Order (EO) No. 298 should only be 20% of P800.00, or the equivalent amount of P160.00 for incidental expenses
pursuant to Section 6 of EO No. 248, as amended by EO No. 298 dated March 23, 2004, which provides:

Allowable Travel Expenses. The travel expenses of government personnel regardless of rank and
destination shall be in the amount of Eight Hundred Pesos (P800.00) per day which shall be apportioned
as follows: a) fifty percent (50%) for hotel/lodging; b) thirty percent (30%) for meals and c) twenty
percent (20%) for incidental expenses.

Thus, the total amount of disallowance is reduced from P37,416.00 to P6,020.00, as shown in the table below:

ND No./Amount Payee Amount Amount

Claimed Allowed Disallowed

10-001-101- (10)/ Eunice I. Iquina P10,442.00 4 P10,022.00 5 P 420.00

P4,190.00

6 7
 10-002-101- (10)/ Josephine I. Iquina P10,442.00 6 P10,022.00 7 P 420.00
P4,190.00

10-004-101- (10)/ Eleanor G. Agustino P10,256.00 8 P9,836.00 9 P 420.00

P3,854.00

10-005-101- (10)/ Juanito I. Iscala P10,242.00 10 P9,822.00 11 P 420.00

P3,840.00

10-006-101- (10)/ John Ruen I. Yerro P10,256.00 12 P9,836.00 13 P 420.00

P3,854.00

10-007-101- (10)/ Richard I. Iquina P10,256.00 14 P9,836.00 15 P 420.00

P3,854.00

10-008-101-(10)/ Gregorio V. Imperial, Jr. P17,058.32 16 P 14,938.32 17 P 2,120.00

P5,500.00

10-009-101-(10)/ Zacarias M. Yabut P10,256.00 18 P9,676.00 19 P 580.00

P3,854.00

2010-010-100(10)/ Wilbert Ariel I. Igoy P10,620.00 20 P9,820.00 21 P 800.00

P4,280.00

TOTAL P6,020.00

For ND Nos. 10-001-101(10), 10-002-101(10), 10-004-101(10), 10-005-101(10), 10-006-101(10), and 10-007-101(10),

22
this Commission agrees with the RD that each should be reduced to P420.00 (P140.00 x 3), representing the excess per diem
claimed. Per diem should only be P160.00 equivalent to 20% of P800.00 for incidental expenses, as the meals and hotel
accommodations were already included in the registration cost.

For ND No. 10-008-101(10), the disallowed amount should be reduced from P5,500.00 to P2,120.00, broken down as
follows:

Date Amount Amount Amount Reason for disallowance

claimed allowed disallowed
July 28, P 500.00 P 350.00 23 P500.00 The Convention started on July 29,
2010 350.00 2010, hence, arriving a day earlier and
filing a claim for travelling expenses is
inappropriate under the circumstances.
However, the transportation expense
from airport to the lodging is
authorized, as it would be incurred
whether the travel date was July 28 or
July 29.
July 29, P 500.00 P 160.00 840.00 Since the registration fee covered
2010 250.00 lodging and meals, any claim for
250.00 travelling expense should exclude the
amount allocated under such
registration fee for lodging and meals.
Per diem should only be P160.00
equivalent to the 20% of the P800.00
covering incidental expenses. This
includes transportation expense in
going to and from the venue.
July 30, P 500.00 P 160.00 340.00
2010
July 31, P 500.00 P 560.00 (60.00) Allowable travel expenses include
2010 P400.00 for lodging and P160.00 for
incidental expenses.
August 1, No claim ---- ----
2010
August 2, P 500.00 None 500.00 Per diem claimed shall be chargeable
2010 to the personal funds of appellant
Imperial considering that the
Convention is until July 31, 2010 only.
Total P3,350.00 P 1,230.00 P 2,120.00

For ND No. 10-009-101(10), the disallowance should be reduced from P3,854.00 to P580.00 [(P140.00 x 2) + P300.00]. On
24
June 26, 2010, Appellant Yabut left the venue as shown in his passenger ticket. Thus, he was no longer entitled to per diem on
June 27, 2010.

For ND No. 2010-100-101(10), the disallowance should be reduced from P4,280.00 to P800.00 since the registration fee
already covered lodging and meals. Hence, the claim for travelling expense should exclude the amount allocated for lodging and
meals. The amount of per diem should only be in the amount of P160.00 per day equivalent to 20% for incidental expenses. Thus,
25
of the total per diem collected in the amount of P1,280.00, only P480.00 should be allowed covering incidental expenses for
three days.
three days.

RULING

WHEREFORE, premises considered, Commission on Audit Regional Office VI Decision No. 2014-007 dated July 17,
2014 is PARTLY APPROVED. Accordingly, the total amount of disallowance under the various Notices of Disallowances (NDs)
is hereby reduced from P37,416.00 to P6,020.00 as follows:

ND No. Payee Amount disallowed

From To
(Per ND) (Per this
decision)
10-001-101- (10) Eunice I. Iquina P4,190.00 P 420.00

10-002-101-(10) Josephine I. Iquina 4,190.00 420.00

10-004-101-(10) Eleanor G. Agustino 3,854.00 420.00

10-005-101-(10) Juanito I. Iscala 3,840.00 420.00

10-006-101-(10) John Ruen I. Yerro 3,854.00 420.00

10-007-101-(10) Richard I. Iquina 3,854.00 420.00

10-008-101-(10) Gregorio V. Imperial, Jr. 5,500.00 2,120.00

10-009-101-(10) Zacarias M. Yabut 3,854.00 580.00

2010-010-100(10) Wilbert Ariel I. Igoy 4,280.00 800.00
TOTAL P37,416.00 P6,020.00

(SGD.) MICHAEL G. AGUINALDO

Chairperson

(SGD.) JOSE A. FABIA (SGD.) ISABEL D. AGITO

Commissioner Commissioner

Attested by:

(SGD.) NILDA B. PLARAS

Director IV
Commission Secretariat

Copy furnished:

Hon. Wilbert Ariel I. Igoy

Municipal Mayor

Ms. Eleanor G. Agustino

Mr. Juanito I. Iscala
Mr. Zacarias M. Yabut
Ms. Eunice I. Iquina
Ms. Josephine I. Iquina
Mr. John Ruen I. Yerro
Mr. Richard I. Iquina

Sangguniang Bayan Members

Mr. Gregorio V. Imperial

Liga President/Punong Barangay

Mr. Vicente Luis D. Marcos

Municipal Accountant

All of the Municipal Government of Malinao

Province of Aklan

The Audit Team Leader

The Supervising Auditor
The Supervising Auditor
Audit Group D-Province of Aklan
Team 6, Kalibo, Aklan

The Regional Director

COA Regional Office No. VI
Ungka I, Pavia, Iloilo

The Director
Information Technology Office
Systems and Technical Services Sector

The Assistant Commissioners

Local Government Sector
Commission Proper Adjudication
and Secretariat Support Services Sector

All of this Commission

CAO-Local-149
COA CP Case No. 2014-348
ESZ/LED/ERD/VBL/LRP

1 Invitation to the 2010 2 nd Quarterly National Executive Officers and National Board (NEO-NB) Meeting and Formal Turn-Over of Responsibilities (Rollo, p. 94).
2 Invitation to attend the 3 rd National Convention addressed to all Provincial/Municipal/Metropolitan/ HUC/ICC Liga ng mga Barangay (LnB) Chapter Presidents and
other concerned League Officials (Rollo, p. 114).
3 Both dated September 12, 2014.
4 Liquidation Report No. 148-100-10-07-24 (Rollo, p. 175).
5 Registration fee P 9,000.00
Transportation 542.00
Incidental expense 480.00 (P160.00 x 3 days)
TOTAL P10,022.00
6 Liquidation Report No. 148-100-10-07-23 (Rollo, p. 165).
7 Registration fee P 9,000.00
Transportation 542.00
Incidental expense 480.00 (P160.00 x 3 days)
TOTAL P10,022.00
8 Liquidation Report No. 148-100-10-07-21 (Rollo, p. 154).
9 Registration fee P 9,000.00
Transportation 356.00
Incidental expense 480.00 (P160.00 x 3 days)
TOTAL P 9,836.00
10 Liquidation Report No. 148-100-10-07-26 (Rollo, p. 146).
11 Registration fee P 9,000.00
Transportation 342.00
Incidental expense 480.00 (P160.00 x 3 days)
TOTAL P 9,822.00

12 Liquidation Report No. 148-100-10-07-28 (Rollo, p. 138).

13 Registration fee P 9,000.00
Transportation 356.00
Incidental expense 480.00 (P160.00 x 3 days)
TOTAL P 9,836.00
14 Liquidation Report No. 148-100-10-07-27 (Rollo, p. 129).
15 Registration fee P 9,000.00
Transportation 356.00
Incidental expense 480.00 (P160.00 x 3 days)
TOTAL P 9,836.00
16 Liquidation Report No. 148-100-10-08-32 (Rollo, p. 112).
17 Registration fee P 10,000.00
Transportation 4,058.32
Incidental expense 480.00 (P160.00 x 3 days)
Lodging 400.00
TOTAL P 14,938.32
18 Disbursement Voucher No. 100-10-07-1174 (Rollo, p. 101).
19 Registration fee P 9,000.00
Transportation + 356.00
Incidental expense 320.00 (P160.00 x 2 days)
TOTAL P 9,676.00
20 Disbursement Voucher No. 100-10-07-9135 (Rollo, p. 88).
21 Registration fee P 9,000.00
Transportation + 340.00
Incidental expense 480.00 (P160.00 x 3 days)
TOTAL P 9,820.00
22 Claim of travelling expense of P300.00/day less P160.00 equivalent to 20% incidental expenses.
23 With Reimbursement Expense Receipt; rollo, p. 118.
24 Rollo, p. 107.
25 As indicated in ND No. 2010-010-100(10) dated November 23, 2010.