The Commission on Audit (COA) has raised concerns over the disbursement of incentives to all regular employees of the Tourism Promotions Board (TPB) under the Program on Awards and Incentives for Service Excellence (PRAISE). The total amount in question is P7.288 million.
According to the 2022 Annual Audit report released by COA, these payments were not supported by detailed outstanding performances and proof that the recipients’ contributions generated savings as required by the Civil Service Commission (CSC) Memorandum Circular No. 1, s. 2001. COA considers this practice of granting incentives without considering specific contributions as irregular expenditure.
Irregular expenditure, as defined in COA Circular No. 2012-03, is “an expenditure incurred without adhering to established rules, regulations, procedural guidelines, policies, principles or practices that have gained recognition in law. Irregular expenditures are incurred if funds are disbursed without conforming with prescribed usages and rules of discipline. There is no observance of an established pattern, course, mode of action, behavior, or conduct in the incurrence of an irregular expenditure. A transaction conducted in a manner that deviates or departs from, or which does not comply with standards set is deemed irregular. A transaction which fails to follow or violates appropriate rules of procedure is, likewise, irregular.”
In CY 2022, the TPB generously granted two monetary awards/incentives to its regular personnel through the PRAISE program. As per the COA, these awards encompass the payment for the 2022 PRAISE ISO Corporate Achievement Award, benefiting all TPB employees, which amounts to a total of 4,899,282.80, equivalent to one month’s basic salary for each employee.
Furthermore, another incentive was provided in accordance with Resolution No. 2022-02, entitling all TPB permanent employees to the PRAISE Special Achievement Award, with each employee receiving a payment of P28,000, resulting in a total of 2,388,901.78.
The payment for the PRAISE ISO Corporate Achievement Award was supported with relevant documents, including CSC-approved PRAISE guidelines, ISO Certification, and approval by the then Officer-in-Charge (OIC), Corporate Operating Officer. The payment for the PRAISE Special Achievement Award was supported by documents showing approval of the TPB PRAISE Committee and proof of the TPB being conferred with the “Destination of the Year Outstanding Achievement Award.”
However, COA’s Audit Query Memorandum (AQM) No. 2023-01 (2022) requested justifications for granting incentives to all employees. COA further stated to include,” the detailed outstanding/excellent performances, suggestions, inventions, and innovations of each of
the recipients that contributed to the efficiency, economy, and productivity of the TPB, documents showing proof that the suggestions, inventions, and superior accomplishments of TPB personnel generated saving and only 20 percent thereof was disbursed and for ISO Certification, in addition to letters a to c, provide justification why the ISO Certification is still included as one of the PRAISE Incentives despite it being one of the requirements for payment of Productivity-Based Bonus (PBB).”
In response, the TPB management justified the grant of incentives to all employees based on the CSC-approved TPB PRAISE, emphasizing that the achievements were collective efforts of all officials and employees. According to TPB, “the CSC-Approved TPB Praise authorized the grant of rewards, incentives, and recognition to “Performance Type Contribution”, which includes individual, group or corporate performance. The TPB ISO Quality Management is a collective effort and accomplishment of the officials and employees of the TPB. Moreover, the “Destination of the Year Outstanding Achievement Award’ received by the TPB is an acknowledgment and recognition of all TPB officials and employees who have contributed to such achievement.”
TPB argued that the ISO Certification and outstanding achievement award recognized the contributions of the entire organization. “the achievement of the TPB in maintaining its Quality Management System (QMS) results from the overall contribution of the officials and employees.
It must be emphasized that the individual performance of the department and offices contributes to the organization’s overall performance based on its performance targets and objectives,” the TPB reply went on further.
The management also highlighted that the PRAISE program was separate from the PBB and governed by different guidelines and agencies,” it must be pointed out that the PBB is a reward system developed by the Governance Commission for Government-Owned and/or Controlled Corporations (GCG) while the PRAISE is a system of reward and recognition for excellence sanctioned by the CSC. Both reward systems have different implementation guidelines and are regulated by different government agencies”, says the TPB in its justification.
The Audit Team acknowledged that the incentives were granted based on the CSC-approved TPB PRAISE. However, they noted that detailed outstanding performances and evidence of savings generated were not provided. The team also raised concerns about granting monetary incentives without considering individual performance or contributions, as it goes against the purpose of the PRAISE program.
As a recommendation, COA urged the TPB management to refrain from granting monetary PRAISE incentives beyond the scope of CSC MC No. 1 s. 2001 and other relevant rules and regulations.
In response, the TPB management stood by their position, asserting that the TPB PRAISE was approved by the CSC and complied with the necessary guidelines. They argued that discontinuing the awards would undermine the authority of the regulatory body and negatively impact the TPB’s maturity level assessment.
The Audit Team acknowledged the TPB’s efforts in obtaining ISO Certification and receiving international recognition but “it emphasizes that giving monetary awards like the PRAISE Incentives are subject to various limitations and compliance with existing rules and
regulations.”
