2/4/2018 COA DECISION NO.

2017-325

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DECISION NO. 2017-325
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DECISION NO. 2017-325

September 27, 2017

Subject : Petition for Review of Atty. Teofilo E.

Guadiz III, Regional Director, Land
Transportation Office (LTO) Regional
Office No. I, City of San Fernando, La
Union, of Commission on Audit National
Government Sector-Cluster 7 Decision No.
2016-019 dated September 6, 2016, which
affirmed Notice of Disallowance No. 15-
018-101-(15) dated October 28, 2015, on
the payment of registration fees for the
seminar attended by 12 LTO employees, in
the total amount of P6,000.00

DECISION

FACTS OF THE CASE

1
Before this Commission is the Petition for Review of Atty. Teofilo E. Guadiz
III, Regional Director, Land Transportation Office (LTO) Regional Office (RO) No. I,
2

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2
Aguila Road, Barangay Sevilla, City of San Fernando, La Union, through counsel, of
Commission on Audit (COA) National Government Sector (NGS) - Cluster 7 Decision
No. 2016-019 dated September 6, 2016, which affirmed Notice of Disallowance (ND)
No. 15-018-101-(15) dated October 28, 2015, on the payment of registration fees for
3
the seminar attended by 12 LTO employees, in the total amount of P6,000.00.

As alleged in the petition, the petitioner received the ND on October 28, 2015.
4
He filed an appeal with the Director, COA NGS-Cluster 7, this Commission, on
5
March 22, 2016 and received COA NGS-Cluster 7 Decision No. 2016-019 dated
6
September 6, 2016 on September 30, 2016. Petitioner filed this Petition for Review
7
on October 25, 2016, or on the 170 th day from receipt of the ND, thus, within the
six-month reglementary period to file an appeal under the 2009 Revised Rules of
Procedure of the COA.

Records show that on August 22, 2015, 12 employees of the LTO RO No. I
attended a seminar entitled “Attitudes for Success”, undertaken by the LIV Media
Events and conducted by Mr. Francis J. Kong, a recognized inspirational speaker on
management approaches and techniques. The seminar was held at the Bangko Sentral
Convention Center, City of San Fernando, La Union. The LTO paid the registration
fees of P500.00 each or a total of P6,000.00 for the 12 employees who attended the
said seminar.

On post-audit, the Audit Team Leader (ATL) and the Regional Supervising
Auditor (SA), both of the LTO RO No. I, issued ND No. 15-018-101-(15) dated
8
October 28, 2015, disallowing the payment of registration fees in the total amount of
P6,000.00 because the seminar was not in accordance with the mandate of LTO and is
personal in nature, hence, irregular.

The persons determined to be liable under the ND for their respective

participations were as follows:

Name/Position/Designation Participation in the transaction

Ms. Mary Ann L. Joven/Acting For certifying that the Disbursement
Accountant Voucher was supported by the necessary
documents
Atty. Teofilo E. Guadiz III/Regional For approving the payment of the
Director transaction
Lorna C. Sotelo, Evangeline Agbunag, For participating in the seminar
Vilmaria Pacis, Richard Agbayani,
Johnny Pacis, Mariano de los Santos,
Cathy Alanon, Judy Sabas, Jaime de
Guzman, Sheila Leonin, Felix Sotelo,

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and Ricardo Ribleza/Employees-

Payees

Aggrieved by the disallowance, Atty. Guadiz appealed the ND before the

9
Director, NGS-Cluster 7, arguing that the seminar was part of the LTO’s
commitment to public service wherein it was essential for the participant-employees
to be motivated in serving the public with integrity and probity. Likewise, the amount
spent for the registration fees was not unconscionable compared to the benefits that
the employees gained out of the seminar and its advantageous effect to the delivery of
public service in the future.

10
In their Answer dated April 11, 2016, the ATL and the SA maintained their
stand in disallowing the registration fees and insisted that the purpose of the seminar
was not directly in line with the mandate of LTO, thus, considered personal in nature.

11
In COA NGS-Cluster 7 Decision No. 2016-019, the Director, finding that the
seminar “Attitudes for Success” was not among the Training Programs of LTO for
calendar year 2015, denied the appeal and affirmed the disallowance. Likewise, the
LIV Media Events which facilitated the training seminar was not a Civil Service
Commission (CSC) - accredited training institution as required under CSC Resolution
No. 1300618 dated April 2, 2013. The Director also stressed that the allegation of
Petitioner Guadiz that the registration fees were not unconscionable was irrelevant
because the disbursement was disallowed for being irregular and not for being
unreasonable.

On October 25, 2016, Petitioner Guadiz, through counsel, filed this Petition for
Review based on the following grounds:

1. The respondent Director committed unjust and patent errors in

holding that the subject disbursement was irregular, not being in
accordance with the mandate of the LTO and not for public
purpose; and

2. The respondent Director failed to take cognizance of the provision

of the Leadership Training in the Training Plan of LTO for CY
2015 which was similar, if not the same with the seminar entitled
“Attitudes for Success.”

12
In her Answer dated November 15, 2016, the Director maintained that the
disallowed disbursement on registration fees was not for public purpose because the
seminar was for the individual interest of the participants; that the seminar was not
among the seminars/trainings programmed by the LTO; that the provider of the

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seminar was not a CSC-accredited training institute; and that there were no records to
show that the seminar was meant to address a particular need of the concerned
employees.

ISSUE

The issue to be resolved is whether or not the Petition for Review is

meritorious.

DISCUSSION

This Commission finds the petition meritorious.

Paragraph 3.1 of the Department of Budget and Management (DBM) National

Budget Circular (NBC) No. 442 dated March 29, 1995 states that:

Government Officials and Employees may participate in

conventions, seminars, conferences, symposia and such other
activities conducted by private organizations for a fee, as part of the
human resource development program of the government , in
accordance with the rules and regulations prescribed by the Civil
Service Commission, chargeable against government funds.
(Underscoring supplied)

Likewise, Paragraph 2.0 of DBM NBC No. 486 dated March 26, 2003 provides that:

Paragraph 3.2 of said Circular is hereby amended to read as

follows:

3.2 The registration fee or charge for participation in said

convention, seminar, etc. shall not exceed P1,200 per day
per participant . Any amount in excess of the prescribed rate
shall be at the expense of the participant. (Underscoring
supplied)

Moreover, in the case of Hon. Jejomar C. Binay and the Municipality of

13
Makati vs. Hon. Eufemio Domingo and the Commission on Audit , on the meaning
of public purpose, the Supreme Court ruled that:

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COA is not attuned to the changing of the times. Public purpose is

not unconstitutional merely because it incidentally benefits a
limited number of persons . x x x. (Underscoring supplied)

In this case, the seminar could be in the nature of a values formation seminar,
a part of the LTO’s human resource development program for the participants who
were Officer-in-Charge (OIC) Chiefs and Assistant Chiefs of the LTO Regional Office
Divisions and District Offices. In fact, the seminar of this kind was included in the
Training Program of the LTO and the target participants were the same employees
14
who attended the seminar, “Attitudes for Success.”

The grounds for the disallowance that the seminar was not in line with the
LTO’s mandate and that it was not for public purpose but for the personal interest of
the participants, were misplaced. The seminar was intended for the participants
because as heads of divisions and district offices of the agency, they need to be trained
not only to improve their knowledge and skills in order to effectively administer and
manage the operational activities of their respective divisions and district offices, but
also to develop their values, attitudes, and personality that will make them better
managers and public servants. Certainly, the theoretical and practical learning that the
participants gained from the seminar contributed to the agency’s better, organized,
quality, and efficient service to the general public.

Finally, the registration fee at P500.00 each or a total of P6,000.00 paid for the
seminar is even below P1,200.00, the amount allowed under DBM NBC No. 486.

RULING

WHEREFORE , premises considered, the Petition for Review of Atty. Teofilo

E. Guadiz III, Regional Director, Land Transportation Office Regional Office No. I,
City of San Fernando, La Union, is hereby GRANTED . Commission on Audit
National Government Sector - Cluster 7 Decision No. 2016-019 dated September 6,
2016 is REVERSED and SET ASIDE . Accordingly, Notice of Disallowance No.
15-018-101-(15) dated October 28, 2015, on the payment of registration fees in the
total amount of P6,000.00, is LIFTED .

(SGD.) MICHAEL G. AGUINALDO

Chairperson

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(SGD.) JOSE A. FABIA (SGD.) ISABEL D. AGITO

Commissioner Commissioner

Attested by:

(SGD.) NILDA B. PLARAS

Director IV
Commission Secretariat

Copy furnished:

Atty. Denmark M. Rillera

Counsel for the Petitioner

The Audit Team Leader

The Supervising Auditor
Both of the Land Transportation Office
Department of Transportation
Regional Office No. I
Aguila Road, Barangay Sevilla
City of San Fernando, La Union

The Director
Cluster 7
National Government Sector

The Director
Information Technology Office
Systems and Technical Services Sector

The Assistant Commissioners

National Government Sector
Commission Proper Adjudication and
Secretariat Support Services Sector

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All of this Commission

ESZ/LED/ERD/JDGD/ACS
cp.dec-guadiz-RO I-LTO(registration fees).3
cmis 2016-1152/cp case no. 2016-1053/114 pages

1 Pursuant to Section 1, Rule VII of the 2009 Revised Rules of Procedure of the Commission on Audit, rollo ,
pp. 29-50.
2 Atty. Denmark M. Rillera, Attorney II, Land Transportation Office Regional Office No. I, City of San
Fernando, La Union.
3 Lorna C. Sotelo, Evangeline Agbunag, Vilmaria Pacis, Richard Agbayani, Johnny Pacis, Mariano de los
Santos, Cathy Alanon, Judy Sabas, Jaime de Guzman, Sheila Leonin, Felix Sotelo, and Ricardo Ribleza.
4 Rollo , p. 49.
5 Ibid.
6 Rollo , p. 72.
7 Rollo , p. 32.
8 Rollo , pp. 7-8.
9 Rollo , pp. 74-75.
10 Rollo , pp. 80-81.
11 Rollo , pp. 24-26.
12 Rollo , pp. 99-101.
13 G.R. No. 92389, September 11, 1991.
14 As stated in No. 3 of the Reply of Atty. Denmark M. Rillera, rollo, p. 113.

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