The Commission on Audit (COA) has recommended the refund of performance incentives amounting to P2.675 million which was granted to officials and employees of the Philippine Sports Commission (PSC) in 2015.
The sum was charged against the National Sports Development Fund (NSDF), according to the auditors.
“The Agency Performance Incentive amounting to P2,675, 000.00 granted to PSC officials and employees under the PRAISE was charged against the NSDF, thus, was devoid of legal authority,” they said in a 2015 audit report by the Commission on Audit (COA) on the PSC.
PRAISE is the Program on Awards and Incentives for Service Excellence.
Under the PRAISE, monetary and non-monetary awards and incentives are provided as recognition and reward based on performance, innovative ideas, and exemplary behavior.
The auditors cited Section 2, Rule VII of the implementing rules and regulations of Republic Act (RA) No. 6847 or the PSC Act, which provides that “[t]he NSDF shall be used exclusively to finance the country’s integrated sports development programs, particularly grassroots sports development programs,” national games and other sports competitions nationwide as well as the country’s participation in international sports competitions.
They also cited Civil Service Commission Resolution No. 010112 dated January 10, 2001 which provides, among others, that at least 5 percent of Human Resource Development (HRD) funds shall be allocated for the PRAISE and incorporated in the agency’s annual Work and Financial Plan and budget.
“In our review of the NSDF, we noted that the disbursements included payment to all the 107 PSC officials and employees of performance incentives under the PRAISE, which was not among the expenses allowed under RA No. 6847,” the auditors said.
Based on the audit report, the cash advance and the corresponding liquidation amounting to P2.675 million were supported by Resolution No. 072-2015 dated January 28, 2015 which approved the PRAISE Committee’s request for the grant of a performance incentive of P25,000 each to qualified regular employees of the agency.
“The payment of the PRAISE incentive resulted in the utilization of NSDF for expenses that were not in accordance with the purpose of the fund, thus, devoid of legal authority,” they said.
The auditors thus told the PSC to require the “[c]oncerned PSC officials and employees to refund the PRAISE incentive” and to require the “Chief Accountant to desist from using the NSDF for unauthorized purposes.”
Former PSC Chairman Ricardo Garcia was the agency’s chief from 2010 to June 2016. He was replaced by now PSC Chairman William “Butch” Ramirez in June 2016.