Koronadal City 2008 COA Audit 21
July 2, 2010
21. Non-implementation of the required organizational structure and staffing pattern of the city contrary to Section 76 of the Local Government Code resulting to deviation from the policy guidelines for contract services and the lodging of expenses totaling _P 54.6 Million to General Services Account (795) in violation to CSC Resolution No. 02-0790.
The organizational structure of the city government is not yet patterned to the Plantilla of Personnel for City but still that of a municipality more than eight (8) years after becoming a component city of the Province of South Cotabato. This was contrary to Section 76 of the Local Government Code (RA 7160) which states –
“Every local government unit shall design and implement its own organizational structure and staffing pattern taking into consideration its service requirements and financial capability subject to the minimum standard and guidelines prescribed by the Civil Service Commission.”
“Section 1.1 of CSC Resolution No. 020790
a. Individual Contract of Services/Job Order – refers to employment described as follows:
1. The contract covers lump sum work or services such as janitorial, security or consultancy where no employer-employee relationship exists between the individual and the government;
2. The job order covers piece work or intermittent job of short duration not exceeding six months and pay is on a daily basis;
3. The contract of services and job order were not covered by Civil Service law, rules and regulations, but covered by Commission on Audit (COA) rules;
4. The employees involved in the contract or job order do not enjoy the benefits enjoyed by government employees, such as PERA, ACA and RATA.
5. Services rendered thereunder are not considered as government service.”
“Section 4. Prohibitions – The following are prohibited from being hired under a contract of services and job order.
a. Those who have been previously dismissed from the service due to commission of an administrative offense;
b. Those who are covered under the rules on nepotism;
c. Those who are being hired to perform functions pertaining to vacant regular plantilla positions.
d. Those who have reached the compulsory retirement age except as to consultancy services.”
“Sec. 2 of CSC Resolution 021480 with subject of clarifications on Policy guidelines for Contract of Services also states that:
Sec. 2. Application to Local Government Units (LGUs). Under Section 77 of the Local Government Code of 1991, the local chief executive may employ emergency or casual employees or laborers paid on a daily wage or piecework basis and hired through job orders for local projects authorized by the sanggunian concerned, without need of approval or attestation by the Civil Service Commission.”
The city government of Koronadal had only 211 regular personnel with permanent position per Personnel Schedule for Budget Year 2008. To supplement its manpower requirements, the LGU hired casual employees and Job Orders personnel consisting of 846 workers as of CY 2008 per list of Job Orders furnished by the HRMO to our office as summarized below as follows:
List of Job Orders
City of Koronadal
OFFICE ASSIGNED No. of JOs
Accounting Office 6
Assessor’s Office 8
Bureau of Fire Protection 2
Commission on Elections 5
Cooperative’s Office 9
Data Encoder 13
Engineer’s Office 202
Environment and Natural Resources Office (CENRO) 138
General Services Office 12
Health Office 34
Information Office 2
Kor. Investment Center 8
Legal Office 3
Mayor’s Office – Franchising 1
- Nutrition Program 2
- CSU 172
Municipal Trial Court 4
Nutrition Office 2
Planning and Dev’t. Office 3
Sanguniang Panlungsod 36
Social Welfare and Dev’t. 7
Traffic Section 40
Treasurer’s Office 3
Vice Mayor’s Office 39
Review of the submitted List of Job Order personnel and its corresponding payroll for the month of September 2008, we have observed various deficiencies which were disadvantageous to the government viz;
1. There were deviations from the policy guidelines for contract services in violation to CSC Resolution No. 02-0790 such as:
a. Some job order personnel were covered under the rules on nepotism.
b. Various job order personnel were hired to perform function pertaining to vacant regular plantilla position (Annex “O”).
c. Various job order personnel were paid on a monthly basis (Annex “P”).
2. The total Job Order contracts of the City represent 80% of its total manpower complement thus only 211 or 20% belong to the regular personnel with permanent position hence accuracy of total Expenditures charge to Personal Services was doubtful.
3. Records of Services of these Job Order personnel were not under the control and supervision of the Human Resource Management but instead they were controlled by each Department Heads.
4. Lack of Proper Training of Personnel and their frequent movement due to short duration of their contracts resulted to non-attainment of quality service of manpower.
Total Compensation paid to Job Order personnel were charged to MOOE under the account of General Services with a total amount of P54,593,230.60 including those paid to Job Order personnel performing special or technical skills or professional.
This audit observation was reported in AOM No. 09-013 dated January 29, 2009 and comments of management was not yet received as of this date. However, they informed us during the exit conference that they will start implementing the required staffing pattern and organizational structure of the City.
Recommendation for Koronadal City Government:
1. Require the full implementation of the required Organizational Structure and Staffing pattern of the City as mandated in Sec. 76 of the Local Government Code to avoid various deviations from the policy guidelines for contract services embodied in the CSC Resolution No. 02-0790.