G.R. No. 213200 - NAYONG PILIPINO FOUNDATION, INC., VS. CHAIRPERSON MA. GRACIA M. PULIDO TAN, COMMISSIONER HEIDI L. MENDOZA, COMMISSIONER ROWENA V. GUANZON, THE COMMISSIONERS, COMMISSION ON AUDIT (COA).DECISION - Supreme Court E-Library

Ruling

WHEREFORE, the premises considered, and in view of Management's compliance with our requirements on the allowances granted to OGCC lawyers charged to NPFI, this Office LIFTS the suspension thereon and accordingly allows the same in audit. However, as regard the other suspended payments for anniversary bonus and Christmas cash gift as well as the excessive honoraria to BAC members under the same NS, said payments have matured into disallowance for non-compliance of the audit requirements. Accordingly, Notice of Disallowance No. 2007-001 is hereby issued by this Office. [11] On appeal, the Adjudication and Settlement Board (ASB) dismissed the appeal and affirmed the Decision of the LAO-Corporate through its Decision No. 2011-074 dated June 7, 2011. [12] NPFI filed a Petition for Review before the COA but the same was denied by the Commission proper en banc in its Decision No. 2013-206 dated November 20, 2013. [13] Motion for Reconsideration [14] of the said Decision was denied in a Resolution dated April 4, 2014, [15] prompting NPFI to file the instant petition for certiorari . NPFI maintains in this petition that the COA gravely abused its discretion when it disallowed the payment of the total aggregate amount of Php 330,500.00 comprising of Anniversary Bonus, Extra Cash Gift, to its trustees, officials, and personnel; and honoraria to the members of its BAC and TWG.. NPFI argues that Administrative Order (A.O.) No. 263 dated March 28, 1996 and DBM National Budget Circular No. 452 dated May 20, 1996 explicitly authorize the grant of Anniversary Bonus to agencies in celebration of their milestone year in the amount of Php 3,000.00, as in the case at bar where it was granted in celebration of NPFI's 30 th and 35 th anniversary. Further, NPFI argues that COA should have allowed the 35 th Anniversary Bonus given in 2004 to be applied in 2007 considering that the pronouncement that NPFI's anniversary should be reckoned from November 6, 1972 instead of June 11, 1969, was made only on September 11, 2005. Anent the allowance of Extra Cash Gift, NPFI claims that same is supported by DBM Budget Circular No. 2002-04 dated November 28, 2002, which then President Gloria Macapagal-Arroyo approved. All told, NPFI points out that COA should not have disallowed the grant of Anniversary Bonus and Extra Cash Gift as it is still the subject of a Motion for Reconsideration pending before the OP through the DBM. On the matter of honoraria given to its BAC and TWO members, NPFI alleges that COA erred in making a sweeping disallowance absent any evidence that the same is in excess of the 25% (of the basic salary) ceiling set forth under Section 15 of Republic Act (R.A.) No. 9184. Finally, NPFI, citing good faith at the time the disallowed benefits were granted and received, seeks this Court's consideration to rule in its favor. On the other hand, the respondents claim, in sum, that no grave abuse of discretion may be attributed to them in affirming the disallowance of th