COA v. Province of Cebu, GR No. 141386, November 29, 2001FACT !

The provincial governor of the province of Cebu, as chairman of the local school board, under Section 98
of the Local Government Code, appointed classroom teachers who have no items inthe DECS plantilla to
handle e tension classes that would accommodate students in the publicschools!

"n the audit of accounts conducted b# the Commission on $udit %C&$' of the (rovinceof Cebu, for the
period )anuar# to )une *998, it appeared that the salaries and personnel+related benefits of the
teachers appointed b# the province for the e tension classes werecharged against the provincial SE ! Li-
ewise charged to the SE were the college scholarshipgrants of the province! Conse.uentl#, the C&$
issued /otices of Suspension to the province of Cebu, sa#ing that disbursements for the salaries of
teachers and scholarship grants are notchargeable to the provincial SE !

aced with the /otices of Suspension issued b# the C&$, theprovince of Cebu, represented b# its
governor, filed a petition for declarator# relief with the trialcourt!

&n December *0, *999, the court

a quo

rendered a decision declaring the

.uestionede penses as authori1ed e penditures of the SE ! Declaring further, the respondent2s auditfin
dings on pages 03 and 04 in the $nnual $udit 5eport on the (rovince of Cebu for the #ear ending
December 0*, *999 as null and void!

6ence, the instant petition b# the Commission on $udit on the e penses for college scholarship grants,
since chargeable to the Special Education und %SE ' of the local government unit concerned e pressl#
was not mentioned under 5!$!/&!7 4!

ith the effectivit# of the Local Government Code of *99*, petitioner contends that5!$! /o! 7 4 was
repealed, leaving Section *:: %c' of the Code to govern the disposition of the SE , to wit;

"C. 100. #ee$in% &n' (uorum) *u'%e$

%c' The annual school board budget shall give priorit# to the
following;%*' Construction, repair, and maintenance of school buildings and other facilities of publicele
mentar# and secondar# schools<%=' Establishment and maintenance of e tension classes where
necessar#< and%0' Sports activities at the division, district, municipal, and baranga# levels!

+ "!
 hether or not the salaries and personnel+related benefits of public school teachers appointedb# the
local chief e ecutives in connection with the establishment and maintenance of e tension