276775 Teresita P. De Guzman, et al. Vs. Commission on Audit — Official PDF

Decision 13 G.R. No. 276775 compensation is in accordance with the provisions of the Salary Standardization Law. Since the position of general manager is covered by the Salary Standardization Law, it follows that the same is covered by the provi sions of the said law pertaining to the integration of allowances, particularly, Section 12.thereof... Accordingly; the prevailing rule is that the allowances of employees covered by the Salary Standardization Law are deemed included in the standardized salary, except: (1) representation and transportation allowance; (2) clothing and laundry allowance; (3) subsistence allowance of marine officers and crew on board government vessels; (4) subsistence allowance of ho spital personnel; (5) hazard pay; (6) allowance of foreign service personnel stationed abroad; and (7) such other allowances as the DBM may determine. Notably, the Extraordinary and Miscellaneous Expenses granted by the Board of Pagsanjan Water District is not among the listed exemptions to the integrated allowances under the Salary Standardization Law. Neither is there any showing that the said allowance was determined by the DBM as one which may be granted to the General Manager of Pagsanjan Water District. Verily, the mere grant of authority to the board of directors of a local water district to fix the compensation of the general manager does not amount to an unrestrained prerogative to grant salary and allowances wi complying with the foregoing legislative enactment.” thout Paguio goes on to rule that since Presidential Decree No. 198 does not give local water districts any authority to grant EMEs, such authority must derive from, and thus be governed by the GAA, following CO 2006-001: : ; A. Circular Circular No. 2006-01 prescribes guidelines on the disbursement of Extraordinary and Miscellaneous Expenses and other similar expenses in government-owned and controlled corporations and/or government financial institutions and their subsidiaries. While it recognizes that the governing boards of such entities are empowered to appropriate such amounts as they may deem appropriate for the said allowance, the authority is qualified. Under Item No. 1, Part Ill of the same circular pertaini Audit Guidelines, it indicates: If. AUDIT GUIDELINES ing to 1. The amount of extraordinary and miscellaneous expenses, as authorized in the corporate charters of GOCCs/GFls, shall be the ceiling in the disbursement of these finds. Where no such authority is granted in the corporate charier and the authority to grant extraordinary and miscellaneous expenses is derived from the 7% Id. at 499-503 A