G.R. No. 245274 -

Ruling

WHEREFORE , premises considered, the Petition for Review of Ms. Teresita P. De Guzman, et al., all of Baguio Water District (BWD), Baguio City, of Commission on Audit-Cordillera Administrative Region Decision No. 2015-26 dated May 21, 2015, is DENIED for lack of merit. Accordingly, Notice of Disallowance No. 12-023-101-(09) dated May 15, 2012, on the payment of Centennial Bonus to the officers and employees of BWD for calendar year 2009, amounting to P1,233,860.50 is AFFIRMED with MODIFICATION . The passive recipients of the disallowed Centennial Bonus are not required to refund the amount received in good faith, but the approving/certifying/authorizing officers for the benefit remain liable for the total disallowance. [3] 2) Resolution [4] dated September 27, 2018, denying petitioner's Motion for Reconsideration. Antecedents Under Resolution (BR) No. 046-2009 dated November 20, 2009, the Baguio Water District (BWD) authorized the grant of Centennial Bonus to its officers and employees in the amount equivalent to fifty percent (50%) of the employee's salary. The bonus was distributed to the recipients on the occasion of the 100th anniversary of the City of Baguio. [5] The COA Audit Team, led by Antonieta La Madrid, issued Notice of Disallowance (ND) No. 12-023-101-(09) [6] dated May 15, 2012 on the total amount of P1,233,860.50 granted as centennial bonus to the BWD officers and employees for being allegedly devoid of legal basis. The COA Audit Team cited Section 3(b) of Administrative Order (AO) No. 103 dated August 31, 2004 issued by President Gloria Macapagal-Arroyo, suspending the grant of new or additional benefits to full-time officials and employees, except: 1) Collective Negotiation Agreement Incentives (CNAI) granted under the Public Sector Labor Management Council Resolution No. 4, Series of 2002, and No. 2, Series of 2003; and 2) those expressly granted by applicable presidential issuances. As a consequence of the disallowance, the recipients were each directed to refund the centennial bonus they received. Proceedings before the COA-CAR Petitioners Teresita de Guzman (former General Manager); Godiula Guinto, (former Internal Auditor); Viveca Villafuerte (former Administrative Manager); Wilhelmina Aquino (Senior Accountant); Renato Rondez (member of the present BWD Board of Directors); and former members of the Board of Directors, namely Moises Cating, Ramsay Colorado, Gina Romillo- Co, Emmanuel Malicdem, and Maria Rosario Lopez appealed to the COA - Cordillera Administrative Region (COA-CAR). They were joined by the BWD employees. Petitioners and the BWD employees essentially argued that the notice of disallowance was defective because the same did not bear the supervising auditor's signature but only that of the audit team leader; the agency was not covered by the austerity measures embodied in AO 103; and, the bonus was released to the officers and employees in good faith. [7] By Decision No. 2015-26 [8] dated May 21, 2015, the COA-C