Thirteen officials and employees of the Catanduanes State University were forced to refund over P1.8 million in honoraria they received as part of the Smart Campus project staff in 2022 after the Commission on Audit flagged the expense as illegally sourced from the university’s income.
This was among the significant findings in the Annual Audit Report on university transactions during that year that was transmitted to the CatSU by State Auditor IV Adenda Devora last May 31, 2023.
The audit disclosed that for the period spanning August 2021 to July 2022, the university granted and paid honoraria out of the Special Trust Fund amounting to P1,824,000.00 to officials/personnel who were designated as project leaders, project members as well as technical and administrative project staff for the special project “Development of the Catanduanes State University (Main and Panganiban Campus) into a Smart Campus” granted by the Commission on Higher Education (CHED).
“Although personnel services specified at the Work and Financial Plan of Memorandum of Agreement of the project was a counterpart of the University, said honoraria were not authorized and not among those specifically mentioned by law to be charged to STF,” the government watchdog stated.
Among those who received the questionable honoraria were the SUC President III as project leader (P240,000.00), Associate Professor V (P108,000.00), CMT II (P216,000.00), Associate Professor V (P216,000.00), Computer Programmer I (P216,000.00), Administrative Assistant II (P192,000.00), Associate Professor III (P108,000.00), Engineer III (P108,000.00), Administrative Assistant VI (P108,000.00), CMT II (P84,000.00), Administrative Assistant II (P84,000.00), Computer Operator I (P84,000.00), and Administrative Officer I (P60,000.00).
The COA reminded the CatSU management to be mindful that the use of Special Trust Funds is subject to certain limitations and restrictions under Republic Act 8292, CHEC CMO No. 20 s. 2011 and PD No. 1445.
“The payment of honoraria to its officials and employees out of tuition fees totaling P1,824,000.00 is without appropriate legal basis, thus, constitutes irregular and unlawful disbursements of public funds and decreased the university funds which could have been utilized for other school projects,” it stressed.
It noted that the payment of various honoraria out of the tuition fee was an audit finding reported in the CY 2021 Annual Audit Report.
It recommended that the management enforce the refund of the entire amount paid as honoraria out of the tuition fee for lack of legal bases.
A source confirmed to the Tribune last week that the concerned officials and employees had already refunded the honoraria they received.
In its comment on the finding, the CatSU management justified that the honoraria was granted for the reason that it was included in the Line Item Budget as CatSU counterpart for the project and taken from the Utilization of Income specifically under SUC-wide Common Fund.
Citing Sec. 18 of CMO No. 20, s. 2011, the management said that the fund can be used to defray administrative costs to serve or benefit the whole university and that the Smart Campus project can be identified under administrative and development cost and payment of honoraria may be charged against the Common Fund.
However, the COA pointed out that the Memorandum of Agreement covering the P25-million CHED grant specified the line items in the Work and Financial Plan but did not specify that the SUC counterpart would be charged against the Special Trust Fund.
Article III of CMO No. 20 provides specific Budgetary Allocation of Special Trust Fund which does not include payments of honoraria for special projects and other related disbursement, the audit team emphasized.
It cited a similar case involving “honoraria charged to the tuition fees” in the decision of the Supreme Court in GR No. 211999 (Ricardo E. Rotoras vs. Commission on Audit) promulgated on Aug. 20, 2019, which held that “since no legal basis for the grant of additional honoraria has been established,” the audit agency correctly ordered the refund of the disallowed amounts, regardless of any good faith defenses the recipients raised.