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COA Issuances >> Decisions of the Commission Proper >> COA DECISION NO. 2022-091
DECISION
For automatic review1 is Commission on Audit (COA) National Government Sector (NGS)-Cluster 5 Decision No. 2016-
062 dated November 24, 2016. The decision partially granted the appeal of Ms. Maria Flora T. Pandes, Chairman, Bids and
Awards Committee (BAC) for 2012, et al.,2 all of the Department of Education (DepEd), Division of Camarines Norte, from
various Notices of Disallowance (NDs) all dated January 20, 2014, relative to the payment of honoraria to the BAC members,
Technical Working Group (TWG) and Secretariat for calendar year (CY) 2012 in the total amount of P173,154.75.
Records disclose that the Supervising Auditor (SA), DepEd-Luzon Visayas Group, and the Audit Team Leader (ATL),
DepEd-Division of Camarines Norte, Daet, Camarines Norte issued various NDs all dated January 20, 2014 relative to the
payment of honoraria charged against the BAC Fund of the agency for CY 2012, as enumerated below:
The NDs were issued on the ground that the amount of honoraria granted violated Section 15 of Republic Act (RA) No.
9184, which states:
The Procuring Entity may grant payment of honoraria to the BAC members in an amount not to exceed
twenty five percent (25%) of their respective basic monthly salary subject to availability of funds. x x x
In computing the amount disallowed, the ATL used as basis the amount of honoraria granted to a recipient and any amount
in excess of 25% of the recipient’s basic monthly salary for that particular month was outrightly disallowed.
On July 22, 2014, Ms. Pandes et al. appealed3 the NDs based on the following grounds:
1) Department of Budget and Management (DBM) Budget Circular (BC) No. 2004-5A dated October 7, 2005
provides that the average amount of honoraria per month over one year shall not exceed 25% of the average
basic salary. The aforementioned provision should not be construed to mean at every month alone but as a whole
in the entirety of the year; and
2) Computing all the honoraria received by the BAC members for one year and getting the average monthly
honoraria by dividing total honoraria received in one year by 12 months, with the minimal amount received for
the entire year, the same will not exceed the 25% basic monthly salary, except in the case of Mr. Vega as BAC
Secretariat since he is occupying an Administrative Aide IV position with Salary Grade 3, his honorarium
exceeded the 25% limit.
In his Answer,4 the ATL expressed his view that the issuance of DBM BC No. 2004-5A merely confirms and reiterates the
true intent of DBM BC No. 2004-5 dated March 23, 2004 which is clear that the grant of honoraria to members of the BAC and
TWG for successfully completed projects must not exceed 25% of the basic monthly salary.
In NGS-Cluster 5 Decision No. 2016-062, the Cluster Director lifted the subject NDs, except for ND No. 2013-034-BAC,
which was reduced from P29,841.75 to P15,442.92, since the honoraria given to Mr. Vega exceeded 25% of his basic monthly
salary by an average of P1,286.91 per month.
ISSUE
The issue to be resolved is whether or not NGS-Cluster 5 Decision No. 2016-062 is proper.
DISCUSSION
Section 15 of RA No. 9184 provides that the Procuring Entity may grant honoraria to the BAC members in an amount not
to exceed 25% of their respective basic monthly salary subject to the availability of funds. To clarify the said provision, DBM BC
No. 2004-5 dated March 23, 2004 as amended by DBM BC No. 2004-5A5 dated October 7, 2005 was issued. Item No. 5.4 of the
latter states that:
The average amount of honoraria per month over one year shall not exceed twenty five percent (25%) of
the basic monthly salary. The honoraria, however, shall be paid only upon the successful completion of
each procurement.
In COA Decision No. 2016-182 dated August 1, 2016, this Commission held that under Item No. 5.4 of DBM BC No.
2004-5A, the honoraria actually received by a BAC member in a month may exceed the monthly honoraria limit (25% of the basic
monthly salary) as long as the monthly average honoraria actually received by said BAC member over one year is still within such
limit.
In the decision under the review, the NGS-Cluster 5 made a re-computation and re-evaluation and concluded, to which this
Commission concurs, that although the honoraria actually received by the appellants exceeded 25% of their basic monthly salary,
the said amounts did not exceed their monthly average honoraria over one year.6 Therefore, except for the honorarium paid to Mr.
Vega covered by ND No. 2013-034-BAC, the honoraria granted to the members of the BAC, TWG and Secretariat were in order.
As to Mr. Vega, the average honoraria he received still exceeded the limit of 25% of his salary. Thus, the ND remains but
only to the amount of P15,442.92, computed as follows:
Particular Amount
Average amount of honoraria per month P4,166.66
over one year
Less 25% of the monthly basic salary, as 2,879.75
shown in the ND
Total P1,286.91
x 12 months 12
Total Amount Disallowed P15,442.92
RULING
WHEREFORE, premises considered, Commission on Audit National Government Sector-Cluster 5 Decision No. 2016-
062 dated November 24, 2016 is hereby APPROVED. Accordingly, Notice of Disallowance (ND) Nos. 2013-022-BAC to 2013-
029-BAC and 2013-031-BAC to 2013-033-BAC, all dated January 20, 2014, in the total amount of P143,313.00, are LIFTED.
However, ND No. 2013-034-BAC dated January 20, 2014 in the amount of P29,841.75 is MODIFIED in that the amount is
reduced from P29,841.75 to P15,442.92.
Attested by:
(SGD.) BRESILO R. SABALDAN
Director IV
Commission Secretary
Copy furnished:
The Director
Cluster 5 – Education and Employment
National Government Sector
The Director
Information Technology Office
Systems and Technical Services Sector
ESZ/EEL/ERD/RGA/NCL
CPCN 2016-1227
Annex A
Name Position
Corazon A. Pabico Vice-Chairman
Bids and Awards Committee (BAC)
Antonio N. Olfindo BAC Member
Robert M. Borromeo BAC Member
Herbie B. De Lemios BAC Secretary
Giovanni I. Asis BAC Secretariat
Milagros S. Tindoy BAC Secretariat
Rodelio A. Vega, Jr. BAC Secretariat
Rafael R. Gadil Technical Working Group (TWG)
Emma T. Soriano TWG
Imelda M. Flores TWG
Honorio F. Estravez TWG
1 Pursuant to Section 7, Rule V, 2009 Revised Rules of Procedure of the Commission on Audit (COA).
2 See Annex A.
3 Appeal Memorandum dated July 22, 2014; rollo, pp. 387-395.
4 Rollo, pp. 396-406.
5 Guidelines on the Grant of Honoraria to Government Personnel Involved in Government Procurement.
6 Rollo, p. 430.