REPUBLIC OF THE PHILIPPINES

COMMISSION ON AUDIT
Commonwealth Avenue, Quezon City, Philippines

RESOLUTION

SUBJECT:

NO. : 2006-009
DATE : June 6, 2006

Guidelines on the Disposition/Resolution of Appeals/Petitions for

Review/Requests for Reconsideration of Various Disallowances on the Grant
of Collective Negotiation Agreement (CNA) Incentive by Various National
Government Agencies (NGAs), Local Government Units (LGUs), State
Universities and Colleges (SUCs), Government Owned or Controlled
Corporations (GOCCs) and Government Financial Institutions (GFIs) Pending
with the Commission Proper.

WHEREAS, various NGAs, LGUs, SUCs, GOCCs, and GFIs have been granting or intending to
grant CNA incentives to their employees;
WHEREAS, this Commission has consistently disallowed the grant of said CNA incentive on the
ground, among other things, that the same is contrary to Republic Act (R.A.) No. 6758, otherwise known
as the "Salary Standardization Law," and for lack of approval by the Office of the President;
WHEREAS, on December 27, 2005, the Office of the President issued Administrative Order (A.O.)
No. 135 which authorizes the grant of CNA incentives;
WHEREAS, by virtue of said A.O. No. 135, and the subsequent issuance by the Department of
Budget and Management (DBM) of Budget Circular No. 2006-1 dated February 1, 2006, which prescribes
the policy and guidelines on the grant of CNA incentive, there is now no legal impediment to the said
grant.
WHEREAS, numerous appeals/petitions for review/requests for reconsideration for the lifting of
disallowances on the grant of CNA incentive are pending before this Commission and considering that it
has already reconsidered its previous adverse decision on the request filed by the Office of the
Ombudsman embodied in the letter dated February 16, 2006 which is now the precedent for cases of
similar nature;
WHEREAS, it has become imperative to prescribe uniform guidelines for the resolution of said cases
and to delegate the evaluation and resolution of the same for expendiency.
NOW THEREFORE, in consideration of the foregoing premises, this Commission hereby resolves to
prescribe the following guidelines on the resolution of the disallowances regarding the grant of CNA
incentive to employees in the government service, viz:
1. The disallowances of CNA incentive received by all concerned employees in the
government service before the issuance of A.O. No. 135 on December 27, 2005 may
now be reconsidered or lifted provided that the grant strictly complied with allowable rates

and the parameters prescribed under DBM Budget Circular No. 2006-1 dated February 1,
2006 and other pertinent accounting and auditing rules and regulations;
2. The appeals, requests for reconsideration and/or petitions for the review of the
disallowances, which are pending with the Commission Proper, this Commission, shall be
remanded for resolution to the concerned Regional Legal and Adjudication Director
(RLAD), for those government agencies outside of Metro Manila, and the concerned
Director of Legal and Adjudication Office (LAO), for the National Capital Region; and
3. The CNA incentive granted after the issuance of A.O. No. 135, shall be subject to the
usual post-audit by the Audit Team Leader (ATL) or the Supervising Auditor (SA), as the
case may be, of the agency concerned.
This Resolution takes effect immediately and
review/requests for reconsideration.
Quezon City, Philippines.

covers

all pending appeals/petitions

for