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

Decision 16 G.R. No. 276775 compensation under Section 12 of Republic Act No. 6758. Local water districts as created by Presidential Decree No. 198 are public corporations; as such, they only have the powers that are granted to them by law, or are necessary to carry out their purposes. 7% As discussed in Paguio, the compensation-fixing power of local water districts is controlled by Republic Act No. 6758 and other issuances governing the compensation of local water district employees. Thus, the taxation of fringe. benefits under the NIRC cannot be construed as a grant of authority for local water districts to grant such non-integrated benefits, moreso in the absence of any express or implied authority to do so in Section 33 of the NIRC. That provision simply taxes fringe benefits as defined therein. Also, as the COA-CAR correctly points out, the EMEs paid to De Guzman, Royeca and Tenedero cannot be considered exempted fringe benefits under paragraphs 5.4 and 5.5 of DBM CCC No. 10, as they were authorized long after the June 30, 1989 cut-off date, and the Board resolutions simply describe them as fringe benefits, without specifying their purpose or character.®° Ii. Anent petitioners’ liability to refund the disallowed amounts, the Madera rules and its subsequent clarifications apply: 2. If a Notice of Disallowance is upheld, the rules on return are as follows: a. Approving and certifying officers who acted in good faith, in regular performance of official functions, and with the diligence of a good father of 7 Davao City Water District v. Civil Service Commission, 278 Phil. 605, 609-617 (1991) [Per J. Medialdea, En Banc]; Marilao Water Consumers Association, Inc. v. Intermediate Appellate Court, 278 Phil. 444, 453 (1991) [Per J. Narvasa, First Division]. 80 Rollo, pp. 50-51. COA-CAR Decision. Paragraphs 5.4 and 5.5 of DBM CCC No. 10 list 23 specific types of fringe benefits that can remain disintegrated from the standard salary and may continue to be received only by incumbents as of June 30, 1989 who are authorized and actually receiving said allowances/benefits as of said date, at the same terms and conditions prescribed by P.D. No. 985, as amended, namely: Representation and Transportation Allowances (RATA); Uniform and Clothing Allowance; Hazard Pay as authorized by law; Honoraria/additional compensation for employees on detail with special projects or inter-agency undertakings; Honoraria for services rendered by researchers, experts and specialists who are of acknowledged authorities in their fields of specialization; Honoraria for lecturers and resource persons/speakers; Overtime Pay as authorized by law; Laundry and subsistence allowances of matine officers and crew, on board GOCCs/GFIs owned vessels and used in their operations, and of hospital personnel who attend directly to patients and who by nature of their duties are required to wear uniforms; Quarters Allowance of officials and employees who are entitled to the same; Overseas, Living Quarters and other allowances presently authorized for personnel stationed abroad; Night Differential of personnel on night duty; Per Diems of members of the governing Boards of GOCCs/GFls at the rate as prescribed in their respective Charters; Flying Pay of personnel undertaking aerial flights; Per Diems/Aflowances of Chairman and Members/Staff of collegial bodies and Committees; Per Diems/Allowances of officials and employees on official foreign and loca! travel outside of their official station (DBM CCC No. 10, paragraphs 5.4.1.-5.4.15); Rice Subsidy, Sugar Subsidy; Death Benefits other than those granted by the GSIS; Medical/dental/optical allowances/benefits; Children’s Allowance; Special Duty Pay/Allowance; Meal Subsidy; Longevity Pay; and Teller’s Atlowance Committees (DBM CCC No. 10, paragraphs 5.5,1,-5.5.9). The benefits at bar were simply characterized as “fringe benefits,” without specifying the type of benefit as enumerated above. Rollo, pp. 113-114. BWD Board Resolution Nos. 64-2008 and 65-2008.