Republic of the Philippines

COMMISSION ON AUDIT
Team R5-04, Audit Group NGS-SUCs
and Other NGS Stand Alone Agencies
BISCAST, Naga City

AOM NO: 2017-004(2017)

Date: November 28, 2017

AUDIT OBSERVATION MEMORANDUM (AOM)

Dr. Richard H. Cordial

College President
Bicol State College of Applied Sciences and Technology
Peñafrancia Avenue, Naga city

Attention: Ms. Nancy S. Orgaya

Accountant

We have audited the Hazard Pay (5-01-02-110) account as of September 30, 2017
and observed the following deficiencies/errors:

Absence of substantial documentation of proofs of exposure to risk casts doubt on the

propriety of Hazard Payment amounting to ₱228,561.93.

Section 3.1 of the Joint Circular No.1 s. 2016 provides among others, the new rules
on the grant of Hazard Pay. The Circular describes Hazard Pay as an additional
compensation for performing hazardous duties and for enduring physical hardships in the
course of the performance of duties As a general compensation policy, and in line with
Section 21 of RA No. 7305, Hazard Pay may be granted to Public Health Workers (PHW) if
the nature of their duties and responsibilities, their actual services, and location on work
expose them to great danger, occupational risks, perils to life, and physical hardship, as
determined by the Secretary of Health, or by the Head of the Agency or the Local Chief
Executive, with the approval of the Secretary of Health.

Verification of disbursement vouchers revealed that the claims for Hazard Pay
amounting to ₱228,561.93 were not supported with documents of proof of work expose to
great danger as mentioned above, thus the propriety of payment becomes doubtful. Below is
the detail of Hazard expenses incurred as of September 30, 2017:

HAZARD PAY per GL as of September 30, 2017

Hazard Withholding Net
Names of Payees Pay Tax Amount
Bonacua Siemens A. MD, Medical
1 Officer III 55,901.43 16,770.43 39,131.00
2 Carretero, Emilia E. Dental Aide 29,085.75 5,562.46 23,523.29

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 HAZARD PAY per GL as of September 30, 2017
Hazard Withholding Net
Names of Payees Pay Tax Amount
3 Fortuna, Maria Felicia, DMD, Dentist II 76,295.25 21,427.71 54,867.54
4 Ranola, Jocelyn, PHN I 67,279.50 20,183.89 47,095.61
Total 228,561.93 63,944.49 164,617.44

We recommend that the Agency Head submit the proofs on specific hazards/risks
which the recipient was actually exposed with the approval of the Secretary of Health.

May we have your comments on the foregoing audit observations within five (5)
calendar days from receipt hereof.

NUNI A. CANTILLO
State Auditor III
OIC Audit Team Leader

ELSIE P. LATUMBO
State Auditor V
Supervising Auditor
Proof of receipt of AOM:

Printed Name & Signature

Date:

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