For not filling in Plantilla positions: COA calls out Argao execs

CEBU, Philippines — The Commission on Audit, in its 2022 Annual Audit Reports, has recommended the municipal government of Argao to stop the hiring of contract of services (CoS) to perform functions of plantilla positions.

The audit team, in their post-audit of disbursements, showed that the municipality hired a CoS personnel as a municipal administrator-designate under a contract of service for a period of six months effective January 1, 2022, to June 30, 2022.

The said contract was renewed for another six months effective July 1, 2022, to December 31, 2022.

It said that the municipal administrator position remained vacant until July 15, 2022.

The expected functions of the municipal administrator-designate are the same functions of an administrator as provided in the Local Government Code (RA 7160), thus is contrary to Section 133 of the Omnibus Rules on Appointments and Other Human Resource Actions (ORAOHRA).

“It is prohibited for a Contract of Service employee to perform functions of regular positions nor be designated to positions exercising control or supervision over regular and career employees,” the audit team said.

The audit team also found out that another contract of service was entered into by the municipality with the contractor, on an unknown date but was notarized on August 1, 2022.

The audit team said that the municipality contracted him as an operations officer of the Office of the Mayor, for a period of six months from July 16, 2022 – December 31, 2022.

The operations officer is expected to perform the following functions as per contract to provide support to the Office of the Mayor in matters of administration and finances; to assist in operational management in the office of the mayor; to assist staff in operational matters; train staff in their work assignments and keep the informed on the proper procedure for making and granting a request for the office; handle basic bookkeeping tasks; and perform such other lawful duties and functions as may be directed by the municipal mayor.

The audit team said that the payments of “honorarium” of the contractor as municipal administrator-designate

and operations officer totaling ?262,500.00, for the period from January 1 to September 15, 2022.

It added that a review of the above transactions disclosed that the disbursement vouchers were supported with a copy of the contract and an accomplishment report prepared by the contractor and approved by the municipal mayor.

However, the audit team said that these were not supported with an approved Daily Time Record (DTR) and a certification by the local chief executive that the services cannot be provided by regular or permanent personnel of the agency, as required in Section 4.1.3 of COA Circular No. 2012-001.

Further review of these accomplishment reports disclosed tasks that were merely copied from the functions in the contract for the Operations Officer position, but not including the “handle basic bookkeeping” task, the audit team said.

Even during his tenure as municipal administrator-designate, the same tasks/functions were provided in his accomplishment reports from January 1 to September 15, 2022. For the September 16 to December 31, 2022 payments, the municipality has yet to submit the disbursement vouchers for this period.

“Based on the supporting documents, the accomplishments of the contractor were not in accordance with the contract for the municipal administrator-designate. Likewise, the accomplishments were not detailed and without DTR to prove that services were rendered,” the audit team observed.

The deficiencies noted, the audit team said, are contrary to Section 133 of the 2017 ORAOHRA and Section 4.1.3 of the COA Circular No. 2012-001, thus casting doubts on the validity and propriety of the transactions.

“We recommended and Management agreed to stop the hiring of Contract of Service to perform functions of vacant and existing plantilla positions, in compliance with Section 133 of the 2017 ORAOHRA,” the audit team added.

Also, the audit team observed that the municipality has also hired a tourism officer under a COS employment is contrary to Section 42 of Republic Act (R.A) 9593 and Civil Service Commission (CSC) Memorandum Circular No. 04 series of 2018, thus, casting doubts if the qualification standards required for the Tourism Officer position are achieved.

Section 42 of R.A 9593 or the Tourism Act of 2009 states that every province, city or municipality in which tourism is a significant industry shall have a permanent position for a tourism officer. He or she shall be responsible for preparing, implementing, and updating local tourism development plans, and enforcing tourism laws, rules and regulations.

Likewise, CSC Memorandum Circular No. 4 s. 2018 provides the qualification standards for the Tourism Operations Positions in the Local Government Units pursuant to R.A. No. 9593. The said Memorandum Circular also provides the standards on position titles and salary grades in the creation of the Tourism Officer position.

“Tourism is a significant industry in the Municipality of Argao. However, a review of the Plantilla of Personnel (POP) of the Municipality for CY 2022, disclosed that there is no Tourism Officer position contrary to Section 42 of R.A 9593. With tourism as a significant industry of the municipality, it is required to have a permanent position as a Tourism Officer,” the audit team said.

On February 7, 2022, the municipal mayor entered into a contract of service with the contractor to perform functions as a tourism officer and as a Public Information Officer. The engagement period is from January 1, 2022, to June 30, 2022. This was renewed on July 14, 2022, with an engagement period from July 1, 2022 to December 31, 2022.

In line with this observation, the audit team recommended the management to facilitate the creation, and thereafter, fill up the position that will perform the functions of a tourism officer and discontinue the hiring of a tourism officer under COS employment

In his reply to this observation, the municipal mayor informed the audit team that the Municipality of Argao Devolution Transition Plan for Fiscal Year 2022 to 2024, page 110, Proposed Additional Positions to the Plantilla of LGU Personnel has considered among other positions of co-equally important, the creation of a Tourism Operation Assistant (SG7).

Currently, the mayor explained that there is a significant decrease in the estimated share of National Revenue Allotment for Fiscal Year 2023 which accounts for a 14.47 percent drop or ?44,111,540.00 from that of the fiscal year 2022.

In as much as they wanted to create the needed positions, they are tied because of the huge drop in the National Revenue Allotment (NRA).

The mayor said that the continued hiring of personnel under COS performing the function of the above-cited position is by far, the most practical solution to the problem.

The mayor added that the continued commitment and compliance to the AOM as well as the hiring of a tourism officer under a COS is a balancing act that the local government units must undergo rather than leaving the tourism industry in limbo.

The mayor, however, assured that as soon as the circumstance allows, they will immediately create and open the said position. —  (FREEMAN)