NEA v.

COA, 377 SCRA 233 (2002)

FACTS:

The President issued an executive order entitled “Implementing the Fourth and Final Year
Salary Increases Authorized by Joint Senate and House of Representatives Resolution No.
01, Series of 1994.” It directed the payment of the fourth and final salary increases in two
tranches. However, the NEA did not implement the salary increases in accordance with the
schedule of payment and instead implemented in one lump sum the two tranches. In other
words, NEA accelerated the implementation of the salary increase by paying the second
tranche along with the first tranche. Hence, the Commission’s resident auditor in NEA issued
a notice of suspension and, consequently, a notice of disallowance. The petitioner asked for
a reconsidered but it was, however, denied. Hence, the petition at bar

ISSUE:

Did the COA commit a grave abuse of discretion amounting to lack or excess of jurisdiction
in disallowing the increased salaries? In other words, is NEA allowed to accelerate the
implementation of the salaries due to availability of funds?

HELD:

On NEA’s accelerated implementation and its accordance with the law, the court ruled that
acceleration was not in accordance with the law. NEA claimed that Republic Act No. 8250
(General Appropriations Act of 1997) was their legal basis. However, such law was not self-
executory. Budgetary appropriations under the GAA do not constitute unbridled authority
to government agencies to spend the appropriated amounts as they wish.

Itemization of the Personal Services (the appropriation used by NEA) is prepared after the
enactment of the GAA, and requires the approval of the President (Sec. 23. Chap. 4, Book IV
of the Administrative Code, p. 229). The execution of the GAA is subject to a program of
expenditure to be approved by the President, which will be the basis of the fund release
(Sec. 34, Chap. 5, Book IV of the Administrative Code, p. 229).

The presidential power of control over the executive branch of government extends to all
executive employees from Cabinet Secretary to the lowliest clerk. NEA’s accelerated release
of salary is not in accordance with the law because it is still requires the approval of the
President.